(AUSTIN) — Comptroller Glenn Hegar announced the Texas College Savings Plan (Plan)®, the state’s direct-sold college savings plan, is lowering fees and enhancing its investment lineup. These changes were effective Dec. 13:
- Texas will streamline the current Blended and Index Age-based Portfolios into single age-based Portfolios.
- Texas will expand the Age-based Option from six to ten Age-based Portfolios to provide a smoother investment glide path.
- Texas is reorganizing the Static and Individual Fund Portfolios as Risk-based and Individual Asset Class Portfolios; and
- Texas will add new portfolios within the Risk-based and Individual Asset Class Portfolios to offer more variety with the investment lineup.
The plan also reduces the program management fee and state administrative fee and uses investments with lower estimated underlying investment expenses, resulting in significantly lower estimated total plan fees.
Please refer to the Transition Guide and updated Plan Description and Savings Trust Agreement on TexasCollegeSavings.com for more detailed information about the changes.
The plan has $757 million in total assets, with an average account size of approximately $20,227 (as of Sept. 30, 2021).
The Texas College Savings Plan is administered by the Texas Prepaid Higher Education Tuition Board, with assistance from the Comptroller’s office.
Texas College Savings Plan account withdrawals, including any earnings, are not subject to federal income tax if used for qualified education expenses.
For more information on the plan, including investment options, fees, and opening an account, call 844-445-4733, Option #3, or visit TexasCollegeSavings.com.
Texas Prepaid Higher Education Tuition Board (“Board”) administers the Texas College Savings Plan. Orion Advisor Solutions, Inc. is the plan manager. The Plan and the Board do not provide legal, financial, or tax advice, and participants in the plan should consult a legal, financial, or tax advisor before investing. Charges for the most recent quarter are available on our TexasCollegeSavings.com/expenses.
Non-residents of Texas should consider whether their home state or the beneficiary’s home state offers its residents any tax or other state benefits. Things like financial aid, scholarship funds, and protection from creditors are only available for participants in that state’s plan.