23 PAGES ESTIMATED PRINT
March 15, 2005 - This Page Last Updated March 15, 2005, 11:43:21 AM
Saving for College Book Updated; 529 Authority Joe Hurley Provides
Summary of WV, Surrounding State College Savings Plans
by David M. Kinchen
Editor, Huntington News Network
Hinton (HNN) -- It won't be long before paying for your children's
education will be the biggest single expense of your life. This may even
be true already - if your home mortgage is paid off or if you live where
housing prices haven't gone through the roof.
Fortunately, our amazingly complex Internal Revenue Code offers a
section, 529, that enables families to save for college without paying
taxes on the gains or on the withdrawals if they're used for college
expenses. About seven years ago, as the book critic of the (Beckley)
Register-Herald, I reviewed Joseph F. Hurley's pioneering book on 529
and other college savings plans, "The Best Way to Save for College: A
Complete Guide to 529 Plans." Since legislators are constantly tinkering
with the plans offered by all the states and the District of Columbia,
Hurley has revised the book for 2005.
According to Pittsford, N.Y.-based Hurley, a CPA, "With over 85,000
copies sold, The Best Way to Save for College has become the one book
college-bound families and professional planners must have."
I can't argue with that assessment. Hurley has been involved with
college savings plans longer than just about anyone I've come in contact
with. His book will make a complex subject easier to understand,
especially if you're as financially challenged as I am!
Families interested in 529 and other college savings plans can order the
book from Hurley's web site: www.savingforcollege.com. The site also
contains useful information about college savings plans and links to
other financial web sites.
I asked Hurley to compile a summary of college savings plans available
in West Virginia and in the surrounding states of Kentucky, Ohio,
Pennsylvania, Maryland and Virginia (we're probably surrounded by more
states than any other state in the union). Bear in mind that this
summary is no substitute for the book: I'm running it as a public
service, something we at Huntington News Network take very seriously.
Here's the summary, with the states listed in alphabetical order:
STATE: KENTUCKY
PROGRAM NAME: Kentucky Education Savings Plan Trust
529 TYPE: Savings
STATE AGENCY: Kentucky Higher Education Assistance Authority
PROGRAM MANAGER: TIAA-CREF Tuition Financing, Inc.
INITIAL YEAR OF OPERATION: 1990
TELEPHONE: 1-877-598-7878
INTERNET: www.kysaves.com
Who can open an account? Individuals living in the U.S. who have reached
the age of majority, emancipated minors, UTMA/UGMA custodians, and legal
entities. Not available through brokers.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment option: The Managed Allocation Option contains 11
portfolios of underlying mutual funds. Contributions are placed into the
portfolio corresponding to the age of the beneficiary. The portfolios
shift to a more conservative investment allocation over time.
Static investment options: Select between two portfolios: the 100%
Equity Option and the Guaranteed Option. The 100% Equity Option invests
approximately 80% in the TIAA-CREF Institutional Growth and Income Fund
and 20% in the TIAA-CREF Institutional International Equity Fund. The
Guaranteed Option is invested in an instrument that guarantees principal
and a minimum 3% annual rate of interest (actual rate is declared
quarterly).
Underlying investments: TIAA-CREF institutional mutual funds; the
Guaranteed Option consists of a funding agreement issued by TIAA-CREF
Life Insurance Company.
Fees and expenses: 80% annualized program management fee charged
against the value of the account (none for the Guaranteed Option), which
includes the expenses of the underlying mutual funds. There are no
enrollment or account maintenance fees.
Maximum contributions: Accepts contributions until all Kentucky account
balances for the same beneficiary reach $235,000.
Minimum initial contribution: $25, or $15 per month with payroll
deduction
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- Under state law, qualified distributions from this program are
exempt from Kentucky income tax. Because Kentucky tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Kentucky income tax.
--- Beneficiaries with at least eight years of participation as a
Kentucky resident, and $2,400 in contributions, can lock in their
eligibility for in-state tuition rates at Kentucky public institutions,
even if they later move out of the state.
--- The value of the account will not be counted in determining
eligibility and need for student financial aid programs provided by the
Commonwealth of Kentucky.
--- The program guarantees a 4% minimum return on contributions received
before October 1, 1999 (this benefit is targeted to participants who saw
their accounts converted when TIAA-CREF was hired as program manager).
--- Under Kentucky law, contributions and earnings are exempt from levy
of execution, garnishment, distress for rent, or fee bill by a creditor
of the account owner or beneficiary.
----------------------------------------------------------------------
STATE: KENTUCKY
PROGRAM NAME: Kentucky's Affordable Prepaid Tuition (KAPT)
529 TYPE: Prepaid contract
STATE AGENCY: Kentucky Higher Education Assistance Authority
INITIAL YEAR OF OPERATION: 2001
TELEPHONE: 1-888-919-KAPT (1-888-919-5278)
INTERNET: www.getKAPT.com
Who can purchase a contract? Individuals of legal age, UTMA/UGMA
custodians, and legal entities. The beneficiary must be a Kentucky
resident at the time of program enrollment or intend to attend a
participating institution in Kentucky.
Enrollment period: Begins August 23, 2004 and ends December 13, 2004
Time or age limitations on beneficiary or on use of benefits: Contract
must be purchased at least two years prior to the beneficiary's proposed
college enrollment date.
Contract benefits: The Value Plan will pay tuition and fees at any
school in the Kentucky Community and Technical College System. The
Standard Plan will pay tuition and fees equal to the most expensive
Kentucky public university in the year of attendance. The Premium Plan
represents the average cost of Kentucky's private institutions and grows
in value at the same rate as tuition increases at the University of
Kentucky. The value of these contracts can be used at any eligible
institution in the country. The value of a contract in excess of actual
tuition and fees can be used to pay for other expenses such as books,
equipment and room and board.
Contract options: There are three tuition plans: Value (one or two
years), Standard (one to five years), and Premium (one to five years).
Costs: There is a $50 program enrollment fee for the first contract ($25
for subsequent contracts). For the enrollment period ending December 13,
2004, lump-sum contract prices range from $3,175 for one year to $6,340
for two years in the Value Plan, from $5,724 for one year to $28,578 for
five years in the Standard Plan, and from $16,720 for one year to
$83,559 for five years in the Premium Plan. Contract payments may be
made in a lump sum or in monthly installments (with or without a down
payment) over a variety of terms. Monthly installment payments are
computed to include an additional cost for making payments over time
along with a $1 per month account maintenance fee.
Cancellation provisions: The contract may be canceled at any time. If
the contract is canceled before July 1 of the college enrollment year,
the refund will consist of the payments made into the program less
administration and cancellation fees. If the contract is canceled after
July 1 of the college enrollment year, the refund will consist of the
payout value less administration and cancellation fees. The refund may
be paid in installments. In the event of the beneficiary's death,
disability, or receipt of a scholarship, the refund will consist of the
payout value and the cancellation fee will be waived.
Contract changes: The program accepts requests to change beneficiary and
name a successor owner. Contract ownership is not transferable except in
limited circumstances. There are no special provisions concerning
rollovers to another 529 plan (cancellation provisions would apply).
State backing: Contracts are not backed by the full faith and credit of
the state of Kentucky, but 75 percent of the abandoned property fund
administered by the State Treasurer would be available to meet any
unfunded liability of the program trust.
Special considerations:
--- Under state law, qualified distributions from this program are
exempt from Kentucky income tax. Because Kentucky tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Kentucky income tax.
--- The value of the contract will not be counted in determining
eligibility and need for student financial aid programs provided by the
Commonwealth of Kentucky.
--- Under Kentucky law, the right to benefits is not subject to
attachment, garnishment, or seizure by creditors of the purchaser or
beneficiary.
----------------------------------------------------------------------
STATE: MARYLAND
PROGRAM NAME: College Savings Plans of Maryland-College Investment Plan
529 TYPE: Savings
STATE AGENCY: College Savings Plans of Maryland Board
PROGRAM MANAGER: T. Rowe Price Associates, Inc.
INITIAL YEAR OF OPERATION: 2001
TELEPHONE: 1-888-4MD-GRAD (1-888-463-4723)
INTERNET: www.collegesavingsmd.org
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, and legal entities. Not available through brokers.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment options: The Enrollment-Based Portfolios contain
eight portfolios of underlying funds, ranging from 100% equity to 20%
equity. Contributions are placed into the portfolio corresponding to the
beneficiary's expected year of college enrollment or as selected by the
account owner. Seven portfolios shift to a more conservative investment
allocation over time, eventually transferring to the Portfolio for
College.
Static investment options: Select among four portfolios: the Equity
Portfolio, the Bond and Income Portfolio, the Balanced Portfolio (60%
equity and 40% fixed income), and the Short-term Bond Portfolio.
Underlying investments: T. Rowe Price mutual funds
Fees and expenses: $90 enrollment fee that covers all accounts opened by
the same person for the same beneficiary (reduced to $20 in certain
circumstances involving rollovers from the Maryland Prepaid College
Trust or for current Maryland Prepaid College Trust account owners), $30
annual account maintenance fee on accounts less than $25,000 (waived for
accounts enrolled in an automatic investment or payroll deduction plan),
0.38% annualized program management fee charged against the value of the
account, and underlying fund expenses recently ranging from
approximately 0.35% to 1.25% (however, the expense ratio cap for the
plan as a whole is 1.05%).
Maximum contributions: Accepts contributions until all Maryland account
balances for the same beneficiary reach $250,000.
Minimum initial contribution: $250, or $25 per month
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- Up to $2,500 in contributions per beneficiary may be deducted each
year from Maryland state taxable income. Excess contributions may be
carried forward and deducted for up to ten additional years. Deductions
may be subject to recapture if non-qualified withdrawals are made in a
subsequent year.
--- Under state law, qualified distributions from this program are
exempt from Maryland income tax. Because Maryland tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Maryland income tax.
----------------------------------------------------------------------
STATE: MARYLAND
PROGRAM NAME: College Savings Plans of Maryland-Prepaid College Trust
529 TYPE: Prepaid contract
STATE AGENCY: College Savings Plans of Maryland Board
INITIAL YEAR OF OPERATION: 1998
TELEPHONE: 1-888-4MD-GRAD (1-888-463-4723)
INTERNET: www.collegesavingsmd.org
Who can purchase a contract? U.S. citizens and resident aliens,
UTMA/UGMA custodians, and legal entities. The purchaser or beneficiary
must be a resident of Maryland or the District of Columbia at the time
of program enrollment.
Enrollment period: Most recent enrollment ended March 19, 2004.
Time or age limitations on beneficiary or on use of benefits: The
beneficiary must be in the ninth grade or below at the time of program
enrollment. After high school graduation, the beneficiary has the number
of years purchased in the contract plus ten years and time spent in
active military service to use all benefits.
Contract benefits: The contract pays in-state undergraduate tuition and
mandatory fees at Maryland public institutions according to the plan and
number of years selected. The value derived from the contract will
depend in part on the selection of institution, because public
institutions in Maryland have different tuition and fee levels. If the
beneficiary decides to attend a private or out-of-state school, the
contract will pay the weighted average tuition and mandatory fees of the
Maryland public colleges in the tuition plan purchased or the actual
tuition and mandatory fees, whichever is less. If the beneficiary
receives a scholarship or grant, any unused benefits can be used for
other qualified expenses including tuition charges in excess of weighted
average tuition, graduate school tuition, room and board, and books.
Contract options: One to five years at a Maryland public four-year
university, two years at a Maryland community college, or a
community/university combination (two years of each).
Costs: There is a one-time $75 enrollment fee. The fee is reduced to $20
in certain circumstances involving purchase of additional years,
rollovers, or participation in the Maryland College Investment Plan. In
the enrollment period ended March 19, 2004, lump-sum contract prices for
a child in the ninth grade ranged from $7,132 for the two-year community
college plan to $40,608 for the five-year university plan. Prices are
discounted for younger beneficiaries. Payment options also include
annual payments, 60 monthly payments or extended monthly payments, which
continue until the beneficiary reaches college age. All installment
payments are computed to include an effective annual 7.5% cost of making
payments over time.
Cancellation provisions: A contract can be canceled at any time to
provide a refund of contract payments less a $75 fee, plus or minus 90%
(50% if canceled within three years) of the Trust earnings/losses for
the period of program participation.
Contract changes: The program accepts requests to change beneficiary,
transfer contract ownership, and name a successor owner. The contract
value can be transferred to the Maryland College Investment Plan at an
amount equal to contract payments less a $20 fee, plus or minus 100% of
the Trust earnings/losses for the period of program participation For
rollovers to another state's 529 plan, the fee is $75 and rollover value
is equal to payments plus 100% of Trust earnings/losses (75% if the
contract is under three years old).
State backing: The program has a legislative guarantee. If it is unable
to pay benefits in any given year, the Governor must include in the
annual budget the amount needed to pay full benefits. However, the
Maryland General Assembly has final approval of all state
appropriations. Any appropriation would need to be repaid by the Trust,
without interest, over the following two years.
Special considerations:
--- Tuition benefits will be adjusted to ensure that the minimum benefit
is equal to contract payments plus a reasonable rate of return pegged to
the one-year Treasury bill (less 1.2%). That amount less actual tuition
and fees can be used to pay for other qualified higher education
expenses.
--- Maryland taxpayers may deduct up to $2,500 of their payments, per
contract, each year from Maryland taxable income, with carryforward of
excess payments until all payments have been deducted. Deductions may be
subject to recapture if non-qualified withdrawals are made in a
subsequent year.
--- Under state law, qualified distributions from this program are
exempt from Maryland income tax. Because Maryland tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Maryland income tax.
--- If favorable investment performance causes projected program assets
to exceed projected liabilities by at least 30%, the Board has the
option to rebate the excess surplus to program participants.
--- Under Maryland law, the right to benefits is not subject to
attachment, garnishment, or seizure by creditors of the contract owner
or the beneficiary.
----------------------------------------------------------------------
STATE: OHIO
PROGRAM NAME: Ohio CollegeAdvantage Savings Plan
529 TYPE: Savings
STATE AGENCY: Ohio Tuition Trust Authority (OTTA)
PROGRAM MANAGERS: OTTA and Putnam Investments
INITIAL YEAR OF OPERATION: 2000
TELEPHONE: 1-800-AFFORD-IT (1-800-233-6734)
INTERNET: www.collegeadvantage.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, trusts, and 501(c)(3) organizations. For the Putnam options
only, whether sold direct or through brokers, either the account owner
or the beneficiary must meet Ohio's residency requirements at the time
the account is opened. Ohio nonresidents may join the broker-sold Putnam
CollegeAdvantage Savings Plan described separately below.
Time or age limitations on beneficiary or on use of benefits: None
Age-based investment option: One Putnam and three Vanguard Age-Based
investment options are offered. The Putnam Age-Based Portfolio contains
eight mutual funds. Contributions are allocated between these funds
based on the age of the beneficiary. A reallocation of each account is
made as the beneficiary ages. The Vanguard Age-Based Options offer a
choice among three different schedules: Aggressive, Moderate, and
Conservative. Each schedule contains five portfolios of underlying
funds. Contributions are placed into the portfolio corresponding to the
age of the beneficiary. The portfolios shift to a more conservative
investment allocation over time.
Static investment options: Select among several Putnam and Vanguard
investment options. The Putnam investment options offer three
blended-fund portfolios (Aggressive Growth, Growth, and Balanced), a
stable value portfolio, and 12 individual-fund portfolios. The Vanguard
investment options offer four blended-fund portfolios and seven
individual-fund portfolios.
Underlying investments: Putnam Investments mutual funds and Vanguard
funds
Fees and expenses: Audit and administration expenses of up to 0.04% may
be charged against the program fund. A 0.05% OTTA fee is charged for the
Putnam investment options and a 0.20% OTTA fee is charged for the
Vanguard investment options. The expenses of the underlying funds for
the Putnam investment options are 0.94% for the age-based portfolio and
a range of approximately 0.52% to 1.35% for the static investment
options. The expenses of the underlying funds for the Vanguard
investment options range from approximately 0.15% to 0.29% which
includes a 0.10% investment fee charged to the program by Vanguard. In
addition, accounts opened through a broker are subject to one of three
broker expense structures that will determine any initial sales charge,
contingent deferred sales charge, and/or additional asset-based fees.
There are no enrollment or annual account maintenance fees.
Maximum contributions: Accepts contributions until all Ohio account
balances for the same beneficiary reach $256,000.
Minimum initial contribution: $15
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- Up to $2,000 in contributions per beneficiary may be deducted
against Ohio taxable income each year, with unlimited carryforward of
any excess contributions. Deductions may be subject to recapture if
non-qualified withdrawals or rollovers to another state's 529 plan are
made in a subsequent year, unless the withdrawal results from the
beneficiary's death, disability, or receipt of scholarship.
--- Under state law, qualified distributions from this program, and
distributions due to the beneficiary's death, disability, or receipt of
a scholarship, are exempt from Ohio income tax. Because Ohio tax law
generally conforms to federal tax law, any qualified distributions from
other state 529 plans that are exempt from federal income tax are also
exempt from Ohio income tax.
--- Under Ohio law, an account shall not be subject to execution,
garnishment, attachment, the operation of bankruptcy or the insolvency
laws, or other process of law.
----------------------------------------------------------------------
STATE: OHIO
PROGRAM NAME: Putnam CollegeAdvantage Savings Plan
529 TYPE: Savings
STATE AGENCY: Ohio Tuition Trust Authority
PROGRAM MANAGER: Putnam Investments
INITIAL YEAR OF OPERATION: 2000
TELEPHONE: 1-800-225-1581
INTERNET: www.putnaminvestments.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, trusts, and 501(c)(3) organizations. This program is
distributed through brokers.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment option: The Age-Based Portfolio contains eight
mutual funds. Contributions are allocated between these funds based on
the age of the beneficiary. A reallocation of each account is made as
the beneficiary ages.
Static investment options: Select among sixteen options: three
blended-fund portfolios (Aggressive Growth, Growth, and Balanced), a
stable value option, and twelve individual-fund options.
Underlying investments: Putnam Investments mutual funds
Fees and expenses: $15 annual account maintenance fee on accounts with
less than $25,000 (waived for Ohio residents and for accounts enrolled
in an automatic investment plan with contributions of at least $50),
0.20% annualized program management fee charged against the value of the
account, and underlying fund expenses recently ranging from
approximately 0.52% to 1.40% (portfolio weighted average). In addition,
accounts are subject to one of three broker expense structures that will
determine any initial sales charge, contingent deferred sales charge,
and/or additional asset-based fees. There is no enrollment fee.
Maximum contributions: Accepts contributions until all Ohio account
balances for the same beneficiary reach $256,000.
Minimum initial contribution: $25, or $15 per month
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- Ohio residents receive the same state income tax and creditor
protection benefits described previously for the Ohio CollegeAdvantage
Savings Plan.
----------------------------------------------------------------------
STATE: OHIO
PROGRAM NAME: Guaranteed Savings Fund
529 TYPE: Guaranteed savings
STATE AGENCY/PROGRAM MANAGER: Ohio Tuition Trust Authority
INITIAL YEAR OF OPERATION: 1989
TELEPHONE: 1-800-AFFORD-IT (1-800-233-6734)
INTERNET: www.collegeadvantage.com
PLEASE NOTE: The Ohio Tuition Trust Authority has suspended
contributions into this fund through December 31, 2005. OTTA will decide
in 2005 whether to re-open the fund to contributions in 2006.
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, trusts, and 501(c)(3) organizations. Either the account
owner or the beneficiary must meet Ohio's residency requirements at the
time the account is opened.
Time or age limitations on beneficiary or on use of benefits:
Withdrawals may not be taken until account owner certifies that
beneficiary has reached age 18 or has graduated from high school.
Rollovers are permitted prior to age 18.
Benefits: Each unit in the account is worth 1% of the weighted average
tuition of Ohio's 13 four-year public universities if held on account
until beneficiary is age 18. As of August 1, 2004, this figure is $74.27
per unit. Tuition units can be redeemed to pay for tuition, fees, room
and board, books, and other qualified college expenses at any accredited
college or university in the country.
Costs: Pricing of tuition units will be determined prior to the fund
accepting new contributions. There are no other annual fees or expenses.
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers that meet the requirements of federal tax law and IRS
regulations. Rollover withdrawals from an account for a beneficiary
under age 18 utilize an actuarial formula to determine the account
value.
Special considerations:
--- Ohio residents receive the same state income tax and creditor
protection benefits described previously for the Ohio CollegeAdvantage
Savings Plan.
--- The Guaranteed Savings Fund is backed by the full faith and credit
of the state of Ohio. The state would appropriate funds if the fund had
insufficient assets to meet obligations.
----------------------------------------------------------------------
STATE: PENNSYLVANIA
PROGRAM NAME: TAP 529 Guaranteed Savings Plan
529 TYPE: Guaranteed savings
STATE AGENCY: Pennsylvania State Treasury
PROGRAM MANAGER: Delaware Investments
INITIAL YEAR OF OPERATION: 1993
TELEPHONE: 1-800-440-4000
INTERNET: www.TAP529.com
Who can open an account? A person who has reached the age of majority in
their state of residence, UTMA/UGMA custodians, and legal entities. The
purchaser or beneficiary must be a Pennsylvania resident at the time of
enrollment.
Enrollment period: Open year-round
Time or age limitations on beneficiary or on use of benefits: There is
an approximate one-year wait after a contribution is made before it can
be withdrawn for college.
Guaranteed Savings: Each contribution to an account is pegged to one of
five average tuition levels, or specific tuition levels for 34
publicly-funded schools. Accounts can be used at any eligible
educational institution and for all qualified higher education expenses
as defined by Section 529. The five average tuition levels correspond to
the approximate average tuition charges for that year at 1) Pennsylvania
community colleges, 2) the Pennsylvania State System of Higher Education
Universities, 3) state-related universities (Penn State, Pitt, Temple,
and Lincoln), 4) Ivy League schools, and 5) private four-year colleges.
The tuition level used for this purpose is selected by the participant
when enrolling, but can be changed at any time and the change is made
retroactively. If the account is used for attendance at one of the
Pennsylvania publicly-funded schools, the tuition level will be
automatically changed to the tuition level at that specific school,
recalculating the account based on that school's specific tuition
increases. For attendance at any other school, a change in the tuition
level can be made by the participant retroactive to the first
contribution made.
Costs: There is a one-time $50 enrollment fee (reduced to $25 if account
is opened within three weeks of materials being sent) and a $25 annual
account maintenance fee (waived for accounts in an automatic investment
plan). Within each tuition level a rate for one TAP Credit is
established each academic year and is based on the actual tuition or
average actual tuition for the school(s) comprising that level. The TAP
Credit rate may also contain a premium amount for the purpose of
maintaining the actuarial soundness of the program.
Maximum contributions: Accepts contributions until all Pennsylvania
accounts for the same beneficiary reach $300,000.
Minimum initial contribution: $25
Cancellation provisions: Cancellation of the account results in a refund
of the lesser of (1) the amount that would be obtained by multiplying
the number of TAP Credits applied to such distribution by the actual
per-credit tuition or average actual per-credit tuition in effect in the
academic year of the distribution at the institution(s) comprising the
tuition level designated at the time of such distribution, or (2) the
market value of the account as determined daily by the program.
Additionally, the refund amount will not be less than the amount
contributed into the account (less any cancellation fees). If the
tuition level was changed within the last twelve months prior to the
cancellation, the tuition level that results in the lower refund amount
will be used.
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, and name a successor owner, subject to
residency requirements. A transfer between the TAP 529 Guaranteed
Savings Plan and the TAP 529 Investment Plan may be made once in a
calendar year. There are no special provisions concerning rollovers to
another 529 plan (Pennsylvania taxpayers may be subject to Pennsylvania
income tax on the earnings portion of a distribution rolled over to
another 529 plan).
State backing: Accounts are not backed by the full faith and credit of
the Commonwealth of Pennsylvania. The trustee invests program assets
with the goal of creating a reserve to protect against shortfalls in the
program fund.
Special considerations:
--- Each year the Guaranteed Savings Program fund will be evaluated to
determine if the investment performance of the fund has created an
excess surplus (above the amount needed to cover future withdrawals as
determined by actuarial calculations). The Treasury Department can
decide to allocate a portion of the surplus to accounts in the program.
--- Qualified distributions are exempt from Pennsylvania income tax. The
earnings portion of distributions from other state 529 plans may subject
a Pennsylvania resident to Pennsylvania income tax as Pennsylvania
currently does not conform to federal tax treatment of qualified
distributions.
--- Accounts are not subject to Pennsylvania inheritance tax. Accounts
owned by a Pennsylvania resident in another state's 529 plan could be
subject to Pennsylvania inheritance tax.
--- The value of the account will not be counted in determining
eligibility and need for student financial aid programs provided by the
Commonwealth of Pennsylvania.
--- Under Pennsylvania law, a TAP 529 account or any legal interest
therein shall not be subject to attachment, levy, or execution by any
creditor of an account owner or beneficiary.
--- Savings in TAP 529 are eligible for earning "Tuition Rewards" which
are guaranteed tuition discounts at over 160 colleges participating in
the privately-run SAGE Scholars program.
--- Pennsylvania low-income families (200% of the poverty level) may be
eligible to have their contributions matched with government funds by
participating in the Family Savings Account Program offered through the
Pennsylvania Department of Community and Economic Development.
----------------------------------------------------------------------
STATE: PENNSYLVANIA
PROGRAM NAME: TAP 529 Investment Plan
529 TYPE: Savings
STATE AGENCY: Pennsylvania State Treasury
PROGRAM MANAGER: Delaware Investments
INITIAL YEAR OF OPERATION: 2002
TELEPHONE: 1-800-440-4000
INTERNET: www.TAP529.com
Who can open an account? A person who has reached the age of majority in
their state of residence, UTMA/UGMA custodians, and legal entities. This
program is distributed both direct and through brokers. Anyone who does
not meet Pennsylvania's residency requirements must open their account
through a broker.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment options: The Age-Based Portfolios offer a choice
between two schedules: Aggressive and Conservative. Each schedule
contains seven portfolios of underlying 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.
Static investment options: Select among seven portfolios: Most
Aggressive, Aggressive, Balanced, Conservative, Most Conservative,
Socially Responsible Equity, and Socially Responsible Bond.
Underlying investments: Mutual funds from Delaware Investments and
Calvert Asset Management.
Fees and expenses: $25 annual account maintenance fee on accounts
$20,000 or less (waived for accounts in an automatic investment plan),
0.35% annualized program management fee charged against the value of the
account, and underlying fund expenses recently ranging from
approximately 0.45% to 1.29% (portfolio weighted average). There is no
enrollment fee. Accounts opened through a broker are subject to one of
three alternative broker expense structures that will determine any
initial sales charge, contingent deferred sales charge, and/or
additional asset-based fees.
Maximum contributions: Accepts contributions until all Pennsylvania
account balances for the same beneficiary reach $300,000.
Minimum initial contribution: $1,000 ($50 with automatic investment)
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
investment changes that meet the requirements of federal tax law and IRS
regulations. Transfers between the TAP 529 Investment Plan and the TAP
529 Guaranteed Savings Plan may be made once in a calendar year. There
are no special provisions concerning rollovers to another 529 plan
(Pennsylvania taxpayers may be subject to Pennsylvania income tax on the
earnings portion of a distribution rolled over to another 529 plan).
Special considerations:
--- Qualified distributions are exempt from Pennsylvania income tax. The
earnings portion of distributions from other state 529 plans may subject
a Pennsylvania resident to Pennsylvania income tax as Pennsylvania
currently does not conform to federal tax treatment of qualified
distributions.
--- Accounts are not subject to Pennsylvania inheritance tax. Accounts
owned by a Pennsylvania resident in another state's 529 plan could be
subject to Pennsylvania inheritance tax.
--- The value of the account will not be counted in determining
eligibility and need for student financial aid programs provided by the
Commonwealth of Pennsylvania.
--- Under Pennsylvania law, a TAP 529 account or any legal interest
therein shall not be subject to attachment, levy, or execution by any
creditor of an account owner or beneficiary.
--- Savings in TAP 529 are eligible for earning "Tuition Rewards" which
are guaranteed tuition discounts at over 160 colleges participating in
the privately-run SAGE Scholars program.
--- Pennsylvania low-income families (200% of the poverty level) may be
eligible to have their contributions matched with government funds by
participating in the Family Savings Account Program offered through the
Pennsylvania Department of Community and Economic Development.
----------------------------------------------------------------------
STATE: VIRGINIA
PROGRAM NAME: Virginia Prepaid Education Program (VPEP)
529 TYPE: Prepaid contract
STATE AGENCY: Virginia College Savings Plan Board
INITIAL YEAR OF OPERATION: 1996
TELEPHONE: 1-888-567-0540
INTERNET: www.virginia529.com
Who can purchase a contract? U.S. citizens and resident aliens 18 years
and older, UTMA/ UGMA custodians, and legal entities. The purchaser,
beneficiary, or parent of a non-resident beneficiary must be a Virginia
resident.
Enrollment period: Most recent enrollment ended May 1, 2003; next
enrollment begins October 1, 2004 and ends January 31, 2005
Time or age limitations on beneficiary or on use of benefits: The
beneficiary must be in the ninth grade or below at the time the contract
is purchased. Contract benefits must be used within ten years after the
projected date of high school graduation; extensions may be requested.
Contract benefits: The contract pays in-state undergraduate tuition and
mandatory fees at a Virginia public institution according to the plan
and number of years selected. The value derived from the contract will
depend in part on the selection of institution, because public
institutions in Virginia have different tuition and fee levels. At any
time, contracts may be rolled over from VPEP to VEST or CollegeAmerica
(Virginia's 529 savings program options) at an amount that includes
payments plus a reasonable rate of return (the institutional
money-market fund index). If the beneficiary decides to attend an
in-state private school, the contract will pay an amount equal to the
payments made plus the actual rate of return earned on program fund
investments, capped at the highest tuition and mandatory fees at a
Virginia public institution. For attendance at an out-of-state school,
the contract will pay an amount equal to payments made plus a reasonable
rate of interest based on institutional money market rates, capped at
the average tuition and mandatory fees at Virginia public institutions.
Contract options: One to five years at a Virginia public four-year
university, one to three years at a Virginia community college, or any
combination of university and community college (maximum of eight
years).
Costs: There is a one-time $85 application fee ($25 for each additional
Virginia account opened and owned by the same person). In the enrollment
period that ended May 1, 2003, lump-sum contract prices for a child in
the ninth grade ranged from $1,731 for the one-year community college
plan to $29,400 for the five-year university plan. Prices are discounted
for younger beneficiaries. The contract price may also be paid in 60
monthly installments or over an extended period until the beneficiary
reaches college age (with or without a down payment). All installment
payments are computed to include an effective annual 8% cost of making
payments over time.
Cancellation provisions: If the contract is canceled within three years,
the program will provide a refund of contract payments less a $25
cancellation fee. If the contract is canceled after three years, the
program will provide a refund of contract payments plus a reasonable
rate of return (the institutional money-market index) less a $25
cancellation fee. Cancellation fees are waived in the event of the
beneficiary's death, disability, or receipt of a scholarship.
Contract changes: The program accepts requests to change beneficiary (an
additional payment may be required if the new beneficiary is older than
the current beneficiary), transfer contract ownership, and name a
successor owner. A $10 fee is charged for certain changes. Contract
payments, including reasonable interest, may be rolled over to
Virginia's VEST or CollegeAmerica programs at any time. The program also
permits rollover of contract payments to another state's 529 plan,
except that interest is included only on contracts that are at least
three years old, and a $25 fee is charged.
State backing: If the investment return on program funds is not
sufficient to cover the plan's contractual obligations, Virginia law
requires that the Governor include in the budget an appropriation
providing for such contingency.
Special considerations:
--- Up to $2,000 of contract payments per account are deductible from
Virginia taxable income each year, with unlimited carryforward of excess
payments. The $2,000 limit is removed for individuals who are at least
70 years old. Deductions may be subject to recapture if non-qualified
distributions or rollovers to another state's 529 plan are made in a
subsequent year, unless the distribution results from the beneficiary's
death, disability, or receipt of scholarship.
--- Under Virginia law, qualified distributions from this program, and
distributions due to the death, disability, or receipt of a scholarship,
are exempt from Virginia income tax. Because Virginia tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Virginia income tax.
--- The value of the contract will not be counted in determining
eligibility and need for student financial aid programs provided by the
Commonwealth of Virginia.
--- Under Virginia law, contracts are protected from the claims of
creditors of the purchaser or the beneficiary.
----------------------------------------------------------------------
STATE: VIRGINIA
PROGRAM NAME: Virginia Education Savings Trust (VEST)
529 TYPE: Savings
STATE AGENCY/PROGRAM MANAGER: Virginia College Savings Plan Board and
its Executive Director
INITIAL YEAR OF OPERATION: 1999
TELEPHONE: 1-888-567-0540
INTERNET: www.virginia529.com
Who can open an account? U.S. citizens and resident aliens 18 years and
older, UTMA/ UGMA custodians, and legal entities. Not available through
brokers.
Time or age limitations on beneficiary or on use of account assets:
Accounts must be used within 10 years after the projected date of high
school graduation, or within 10 years after the account is opened if the
beneficiary has already graduated from high school; extensions may be
requested.
Age-based investment option: The Age-Based Portfolios contain seven
portfolios of underlying investments. Contributions may be invested in
any portfolio. The portfolios automatically shift to a more conservative
investment allocation over time.
Static investment options: Select among four portfolios: Aggressive,
Moderate, Conservative and Money Market.
Underlying investments: Mutual funds or separate accounts managed by
Vanguard, Rothschild Asset Management, Capital Guardian, Franklin
Templeton, Western Asset Management, and Invesco
Fees and expenses: $85 enrollment fee ($25 for each additional Virginia
account opened by the same account owner), and operating and investment
expenses at an annual rate recently ranging from approximately 0.85% to
1.00%. There is no account maintenance fee.
Maximum contributions: Accepts contributions until all Virginia account
balances for the same beneficiary reach $250,000.
Minimum initial contribution: $25; $250 minimum in first 12 months
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- Up to $2,000 of contributions per account are deductible from
Virginia taxable income each year, with unlimited carryforward of excess
contributions. The $2,000 limit is removed for individuals who are at
least 70 years old. Deductions may be subject to recapture if
non-qualified withdrawals or rollovers to another state's 529 plan are
made in a subsequent year, unless the withdrawal results from the
beneficiary's death, disability, or receipt of scholarship.
--- Under Virginia law, qualified distributions from this program, and
distributions due to the death, disability, or receipt of a scholarship,
are exempt from Virginia income tax. Because Virginia tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Virginia income tax.
--- Under Virginia law, accounts are protected from the claims of
creditors of the account owner or the beneficiary.
----------------------------------------------------------------------
STATE: VIRGINIA
PROGRAM NAME: CollegeAmerica
529 TYPE: Savings
STATE AGENCY/PROGRAM MANAGER: Virginia College Savings Plan Board and
its Executive Director
INVESTMENT MANAGER: American Funds
INITIAL YEAR OF OPERATION: 2002
TELEPHONE: 1-800-421-4120
INTERNET: www.americanfunds.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, and legal entities. This program is distributed through
brokers.
Time or age limitations on beneficiary or on use of account assets: Must
use the assets in the account or designate a new beneficiary within 30
years after the beneficiary graduates from high school or within 30
years after opening the account, whichever comes later.
Age-based investment options: None
Static investment options: Select among 21 individual American Funds.
Contributions may be directed to one fund or allocated among them.
Underlying investments: American Funds.
Fees and expenses: $10 enrollment fee, $10 annual account maintenance
fee, and underlying fund expenses that vary by fund. In addition,
accounts are subject to one of three alternative broker expense
structures that will determine any initial sales charge, contingent
deferred sales charge, and/or additional asset-based fees.
Maximum contributions: Accepts contributions until all Virginia account
balances for the same beneficiary reach $250,000.
Minimum initial contribution: $250 per fund ($1,000 for the Cash
Management Trust of America)
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- Up to $2,000 of contributions per account are deductible from
Virginia taxable income each year, with unlimited carryforward of excess
contributions. The $2,000 limit is removed for individuals who are at
least 70 years old. Deductions may be subject to recapture if
non-qualified withdrawals or rollovers to another state's 529 plan are
made in a subsequent year, unless the withdrawal results from the
beneficiary's death, disability, or receipt of scholarship.
--- Under Virginia law, qualified distributions from this program, and
distributions due to the death, disability, or receipt of a scholarship,
are exempt from Virginia income tax. Because Virginia tax law generally
conforms to federal tax law, any qualified distributions from other 529
plans that are exempt from federal income tax are also exempt from
Virginia income tax.
--- Under Virginia law, accounts are protected from the claims of
creditors of the account owner or the beneficiary.
----------------------------------------------------------------------
STATE: WEST VIRGINIA
PROGRAM NAME: SMART529 Prepaid Tuition Plan
529 TYPE: Prepaid contract
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program
Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 1998
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can purchase a contract? Individuals 18 years and older and approved
legal entities. The purchaser, beneficiary, or parent of a non-resident
beneficiary must be a West Virginia resident at the time the contract is
purchased.
Enrollment period: Currently closed to new enrollments. The most recent
enrollment period ended December 31, 2002.
Time or age limitations on beneficiary or on use of benefits: The
beneficiary must be in the ninth grade or below at the time the contract
is purchased. Contract benefits must be used within 10 years after the
projected college entrance date.
Contract benefits: The contract pays in-state undergraduate tuition and
mandatory fees at a West Virginia public institution according to the
number of units purchased. If the beneficiary receives a scholarship,
any remaining contract value can be refunded or applied to room and
board, books, or supplies. The value derived from the contract will
depend in part on the selection of institution, because public
institutions in West Virginia have different tuition and fee levels. If
the beneficiary decides to attend a private college in West Virginia or
an out-of-state college, the program will pay the plan benefit value
based on the weighted average tuition and mandatory fees at West
Virginia public institutions.
Contract options: One to ten semester units (up to five years).
Costs: In the enrollment period that ended December 31, 2002, the
lump-sum contract price for a child in the ninth grade was $1,832 per
unit. Prices are discounted for younger beneficiaries. Payments may be
made in a single lump sum or in monthly installments (with or without a
down payment) over a variety of terms. Installment payments are computed
to include an effective annual 7.25% to 8.50% cost of making payments
over time. There is no enrollment fee.
Cancellation provisions: A contract may be canceled at any time and the
cancellation value will be distributed to the contract owner. The
cancellation value is the lesser of (1) payments made and accumulated at
the actual rate of return, with realized and unrealized gains and
losses, less administrative expenses, or (2) payments made and
accumulated at a 1.5% annual rate of return, less administrative
expenses.
Contract changes: The program accepts requests to change beneficiary (an
additional payment may be required if the new beneficiary's projected
college enrollment date is different), transfer contract ownership, name
a successor owner, and transact rollovers that meet the requirements of
federal tax law and IRS regulations.
State backing: Contracts are not backed by the full faith and credit of
the state of West Virginia. A prepaid tuition escrow account was created
to ensure payment of prepaid tuition contracts. Up to $500,000 annually
is placed in the escrow account if an unfunded liability exists in the
trust fund.
Special considerations:
--- All contract payments are deductible from West Virginia taxable
income each year. Deductions may be subject to recapture if
non-qualified withdrawals are made in a subsequent year.
--- West Virginia does not specifically provide that qualified
distributions are exempt from state income tax, but its tax law
generally conforms to federal tax law and so any qualified distributions
that are exempt from federal income tax are also exempt from West
Virginia income tax.
--- The value of the account will not be counted in determining
eligibility and need for student financial aid programs provided by the
state of West Virginia.
--- Moneys in the trust fund are exempt from creditor process in West
Virginia, and payments made on behalf of a designated beneficiary to the
trust fund are exempt from the property of an estate in bankruptcy
proceedings in West Virginia.
----------------------------------------------------------------------
STATE: WEST VIRGINIA
PROGRAM NAME: SMART529 College Savings Option
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program
Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2002
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, and legal entities. This program is distributed both direct
and through brokers. Anyone who does not meet West Virginia's residency
requirements must open their account through a broker.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment option: The Age-Based Option contains four
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,
unless otherwise instructed by the account owner.
Static investment options: In the direct-sold program, select among five
blended-fund portfolios (Aggressive Growth, Growth, Balanced,
Conservative Balanced, and Conservative Bond), and a stable value fund
portfolio. In the broker-sold program, select among three blended-fund
portfolios (Aggressive Growth, Growth, and Balanced), a stable value
fund, and eight individual-fund portfolios.
Underlying investments: Mutual funds from Hartford Funds and Invesco
Fees and expenses: $25 annual account maintenance fee for accounts less
than $25,000 (waived for West Virginia residents and for accounts in an
automatic investment plan), and a 1.16% annualized program management
fee charged against the value of the account, which includes the
expenses of the underlying mutual funds. There is no enrollment fee.
Accounts opened through a broker are subject to one of three alternative
broker expense structures that will determine any initial sales charge,
contingent deferred sales charge, and/or additional asset-based fees.
Maximum contributions: Accepts contributions until all West Virginia
account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $100, or $15 per month with automatic
investments ($500, or $50 per month with automatic investments, for
accounts opened by nonresidents through a broker)
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- All contributions are deductible from West Virginia taxable income
each year. Deductions may be subject to recapture if non-qualified
withdrawals are made in a subsequent year.
--- West Virginia does not specifically provide that qualified
distributions are exempt from state income tax, but its tax law
generally conforms to federal tax law and so any qualified distributions
that are exempt from federal income tax are also exempt from West
Virginia income tax.
--- The value of the account will not be counted in determining
eligibility and need for student financial aid programs provided by the
state of West Virginia.
--- Moneys in the trust fund are exempt from creditor process in West
Virginia, and payments made on behalf of a designated beneficiary to the
trust fund are exempt from the property of an estate in bankruptcy
proceedings in West Virginia.
----------------------------------------------------------------------
STATE: WEST VIRGINIA
PROGRAM NAME: SMART529 Select
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program
Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2004
TELEPHONE: 1-877-767-8529
INTERNET: www.SMART529Select.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA
custodians, and legal entities. This program is not available through
brokers.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment option: The Age-Based Option contains seven
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,
unless otherwise instructed by the account owner.
Static investment options: Select among ten blended-fund portfolios
ranging from 100% equity to 100% fixed income.
Underlying investments: Mutual funds from Dimensional Fund Advisors
Fees and expenses: $25 annual account maintenance fee for accounts less
than $25,000 (waived for West Virginia residents and for accounts in an
automatic investment plan), 0.68% annualized program management fee
charged against the value of the account, and underlying fund expenses
recently ranging from approximately 0.20% to 0.51%. There is no
enrollment fee.
Maximum contributions: Accepts contributions until all West Virginia
account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $500, or $50 per month
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- West Virginia residents receive the same state income tax, financial
aid, and creditor protection benefits previously described for West
Virginia's SMART529 College Savings Option.
----------------------------------------------------------------------
STATE: WEST VIRGINIA
PROGRAM NAME: Leaders SMART529
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program
Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2003
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can open an account? U.S. citizens and resident aliens 18 years and
older, UTMA/UGMA custodians, and legal entities. This program is
distributed through brokers.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment option: The Age-Based Portfolios consist of four
portfolios of underlying funds, ranging from 100% equity to 20% equity.
Contributions are placed into the portfolio corresponding to the
beneficiary's age, and later reassigned to more conservative portfolios
as the beneficiary approaches college.
Static investment options: Select among four blended-fund portfolios
(Aggressive Growth, Growth, Balanced, and Conservative), a stable value
fund, and fifteen individual-fund portfolios.
Underlying investments: Mutual funds from AIM, American Funds, Franklin
Templeton, MFS, and Invesco
Fees and expenses: $25 annual account maintenance fee for accounts less
than $25,000 (waived for West Virginia residents and for accounts in an
automatic investment plan), 0.44% annualized program management fee
charged against the value of the account, and underlying fund expenses
recently ranging from approximately 0.83% to 1.01% for the age-based and
blended-fund portfolios, and from approximately 0.70% to 1.38% for the
individual-fund portfolios. In addition, accounts are subject to one of
three alternative broker expense structures that will determine any
initial sales charge, contingent deferred sales charge, and/or
additional asset-based fees. There is no enrollment fee.
Maximum contributions: Accepts contributions until all West Virginia
account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $500, or $50 per month with automatic
investments ($100 or $15 per month with automatic investments for West
Virginia residents)
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
--- West Virginia residents receive the same state income tax, financial
aid, and creditor protection benefits previously described for West
Virginia's SMART529 College Savings Option.
----------------------------------------------------------------------
STATE: WEST VIRGINIA
PROGRAM NAME: Cornerstone SMART529
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program
Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2003
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can open an account? U.S. citizens and resident aliens 18 years and
older, UTMA/UGMA custodians, and legal entities. This program is
distributed through Edward Jones financial advisors.
Time or age limitations on beneficiary or on use of account assets:
None
Age-based investment option: The Age-Based Portfolios consist of four
portfolios of underlying funds, ranging from 100% equity to 20% equity.
Contributions are placed into the portfolio corresponding to the
beneficiary's age, and later reassigned to more conservative portfolios
as the beneficiary approaches college.
Static investment options: Select among four blended-fund portfolios
(Aggressive Growth, Growth, Balanced, and Conservative), a stable value
fund, and twenty-one individual-fund portfolios.
Underlying investments: Mutual funds from Hartford Funds, Invesco,
American Funds, Federated Investors, Goldman Sachs Asset Management,
Lord Abbett, Putnam Investments, and Van Kampen Investments
Fees and expenses: $25 annual account maintenance fee for accounts less
than $25,000 (waived for West Virginia residents and for accounts in an
automatic investment plan), 0.44% annualized program management fee
charged against the value of the account, and underlying fund expenses
recently ranging from approximately 0.76% to 0.96% for the age-based and
blended-fund portfolios, and from approximately 0.72% to 1.31% for the
individual-fund portfolios. In addition, accounts are subject to one of
three alternative broker expense structures that will determine any
initial sales charge, contingent deferred sales charge, and/or
additional asset-based fees. There is no enrollment fee.
Maximum contributions: Accepts contributions until all West Virginia
account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $500, or $50 per month with automatic
investments ($100 or $15 per month with automatic investments for West
Virginia residents)
Account changes: The program accepts requests to change beneficiary,
transfer account ownership, name a successor owner, and transact
rollovers and investment changes that meet the requirements of federal
tax law and IRS regulations.
Special considerations:
West Virginia residents receive the same state income tax, financial
aid, and creditor protection benefits previously described for West
Virginia's SMART529 College Savings Option.
----------------------------------------------------------------------
(c) 2005 HuntingtonNews.Net, All Rights Reserved.
[TEXT-ONLY VERSION]
ORIGINAL: http://www.huntingtonnews.net/finance/...
.../050315-kinchen-college-savings-plans.html