The Kentucky Education Savings Plan Trust is similar to other TIAA-managed 529 savings programs. The Plan features an age-based option, two 100% equity options, a balanced option, a fixed income option, and a guaranteed option.
- Summary: The Kentucky Education Savings Plan Trust is similar to other TIAA-managed 529 savings programs. The Plan features an age-based option, two 100% equity options, a balanced option, a fixed income option, and a guaranteed option.
- Program type: Savings
- Telephone: 1-877-598-7878
- Web site: Click here to visit
- Program manager: TIAA-CREF Tuition Financing, Inc.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Kentucky's 529 plans for the same beneficiary reach $235,000.
- Minimum contributions: $25, or $15 per pay period via payroll deduction.
- Age-based investment options: The Managed Allocation Option contains 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: Select among 2 100% equity options (one using actively managed funds and the other using mostly index funds), a balanced option, a fixed income option, and the Guaranteed Option.
- Underlying investments: TIAA-CREF institutional mutual funds; the Guaranteed Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and, until January 2010, a minimum 3% annual rate of interest (actual rate is declared annually).
- Enrollment or application fee: None.
- Account maintenance fee: None.
- Program management fees: 0.60% manager fee for the Managed Allocation option includes underlying fund expenses; 0.47% manager fee for the Equity Index, Balanced, and Fixed Income options, and 0.38% fee for the Active Equity Option, do not include underlying fund expenses. No fee for the Guaranteed Option.
- Expenses of the underlying investments: Managed Allocation Option: included in the program management fee.
100% equity options: Ranges from 0.09% to 0.53%
Balanced Option: 0.28%
Fixed Income Option: 0.17%
- Total asset-based expense ratio: 0.56% - 0.91%. None for the Guaranteed Option.
- Program match on contributions: None.
- State tax deduction or credit for contributions: None.