The TNStars College Savings 529 Program is administered by the Tennessee Treasury Department. It features an age-based option, individual investment options with underlying funds from a range of fund companies including Vanguard, DFA, Primecap, and Great-West, and an interest bearing account option with First Tennessee Bank.
- Summary: The TNStars College Savings 529 Program is administered by the Tennessee Treasury Department. It features an age-based option, individual investment options with underlying funds from a range of fund companies including Vanguard, DFA, Primecap, and Great-West, and an interest bearing account option with First Tennessee Bank.
- Program type: Savings
- Program manager: State of Tennessee Treasury Department
- State residency requirements: None
- Maximum contributions: $235,000 including all accounts in the program and any accounts in Tennessee's BEST Prepaid Program held for the same beneficiary
- Minimum contributions: The minimum initial or subsequent contribution to an account for each investment option is $25. Once an initial contribution is made to the account, there are no required subsequent contributions.
- Age-based investment options: An age-based option offers five age bands. Contributions are placed into the portfolio corresponding to the beneficiary's age and automatically shift to a more conservative portfolio over time.
- Static investment options: Select among 13 individual options investing in Vanguard, DFA, Great-West or Primecap funds, or an interest bearing account option with First Tennessee Bank National Association.
- Underlying investments: Vanguard and DFA in the age-based option; Vanguard, DFA, Great-West, and Primecap in the individual options
- Enrollment or application fee: None
- Account maintenance fee: None
- Program management fees: 0.00% - 0.30%
- Expenses of the underlying investments: Ranges from 0.07% to 0.23% in the age-based option; 0.05% to 0.63% in the individual options.
- Total asset-based expense ratio: Capped at 0.35% due to state subsidy, none for the interest bearing account.
- Program match on contributions: Account owners who are Tennessee residents receive $100 with a rollover of an entire account balance from an existing college savings plan, including other 529 plans and the BEST Prepaid Plan. Account owners can also receive $100 for beginning automatic contribution from a checking or savings account.
Under the Tennessee Investments Preparing Scholars Program, eligible families can receive a matching contribution of $100 for a minimum $25 investment, or $500 for a minimum $125 investment. Families can reapply each year, up to a $1,500 maximum benefit per child.
- State tax deduction or credit for contributions: Not applicable. Tennessee does not have a personal income tax.
- Web site: Click here to visit
- Telephone: 855-386-7827
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