Texas 529 College Savings Plan Overview
The Texas College Savings Plan is sponsored by the state of Texas and is available to all U.S. residents regardless of age, income or state of residence. The plan is managed by OFI Private Investments, a subsidiary of OppenheimerFunds, Inc.
Some states offer favorable tax treatment to their residents only if they invest in the state’s own plan. Non-Texas residents should consider whether their state offers a 529 plan with competitive tax advantages.
Features
Tax-free Growth
Earnings in the plan are free of federal income tax for the life of the account.
Tax-free Withdrawal
You can withdraw money from your account without paying income tax on it as long as you use it to pay for qualified higher education expenses. (When withdrawals are used for other purposes, the earnings portion of the withdrawal is subject to federal income taxes and may be subject to an additional federal tax of 10 percent.)
Use Your Savings at Schools in the U.S. and Abroad
You can use your savings to pay for qualified higher education expenses at most accredited institutions in the U.S., including vocational schools, two- and four-year colleges, universities and graduate schools, as well as some foreign institutions.
Choose Your Beneficiary
Put money away for future higher education costs, for your child, grandchild, relative, friend, spouse or even yourself.
Control and Flexibility
Because the 529 account is in your name, you control when and how it is used. Only you can decide when and how much to contribute and when to make withdrawals.
You can even change beneficiaries among qualified family members without penalty or tax implications.
Broad Range of Investment Options
The Texas College Savings Plan lets you pick your path to a better future by offering numerous investment portfolios based on differing risk tolerance, time horizons and financial situations. It’s easy to find one that suits your needs. View investment options >
It doesn’t take a lot to get started
Any U.S. resident can open or contribute to a Plan account, including parents, grandparents, aunts, uncles and even family friends. And they can do so for as little as $25 to start and $15 for future investments.
It’s fast and easy to enroll
Go to www.texascollegesavings.com to enroll online or call toll free at (800) 445-GRAD (4723) for an enrollment kit.
No matter how you open your account, be sure to read the Plan Description on the Texas College Savings Plan Web site carefully. It outlines the risks and expenses associated with investing
in the plan. Investments are market-based and may rise or fall in value.
Not FDIC insured and not guaranteed. Established and maintained by the Texas Prepaid Higher Education Tuition Board.
