Similar to other TIAA-managed 529 savings programs, the Connecticut Higher Education Trust (CHET) features three age-based options along with eight static investment options.
- Summary: Similar to other TIAA-managed 529 savings programs, the Connecticut Higher Education Trust (CHET) features three age-based options along with eight static investment options.
- Program type: Savings
- Program manager: TIAA-CREF Tuition Financing, Inc.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Connecticut's 529 plan for the same beneficiary reach $300,000.
- Minimum contributions: $25, or $15 per pay period via payroll deduction.
- Age-based investment options: 3 age-based options, the Moderate Managed Allocation Option, Conservative Managed Allocation Option and the Aggressive Managed Allocation Option, are offered, each containing 6 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary?s age and later reassigned to more conservative portfolios as the beneficiary approaches college age.
- Static investment options: 8 options are offered: the Equity Index Option, the Active Equity Option, the High Equity Option, the Active Fixed-Income Option, the Social Choice Option, the Index Fixed-Income Option, the Principal Plus Interest Option, and the Money Market Option.
- Underlying investments: TIAA-CREF institutional mutual funds and funds from six outside mutual fund families, GMO, DFA, GE, T Rowe Price, Templeton & Thornburg. The Principal Plus Interest Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and a minimum annual rate of interest (actual rate is declared annually).
- Enrollment or application fee: None.
- Account maintenance fee: None.
- Program management fees: 0.18% manager fee and a 0.01% fee to the state. None for the Principal Plus Interest option; curretnly waived for the Money Market Option.
- Expenses of the underlying investments: Ranges from 0.18% to 0.24% for the age-based options, and from 0.10% to 0.68% for static options. None for the Principal Plus Interest option.
- Total asset-based expense ratio: 0.29% - 0.87%; 0.13% for the Money Market option with waiver. None for Principal Plus Interest Option.
- Program match on contributions: None.
- State tax deduction or credit for contributions: Contributions to a Connecticut 529 plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing Connecticut taxable income, with a five-year carryforward of excess contributions. Rollover contributions are not deductible. Contribution deadline is December 31 postmark if by mail, or final business day of the year if by electronic payment.
- Web site: Click here to visit
- Telephone: 1-888-799-2438