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Independent 529 Plan
Independent 529 Plan allows you to prepay tuition today that your child can later use at any member college.
Topics
1. How Independent 529 Plan Works
Independent 529 Plan allows you to prepay tuition today that your child can later use at any member college. It provides a guarantee against tuition inflation, and the flexibility to choose from some of the nations’ top private and independent colleges. Independent 529 Plan has no start-up fees, no maintenance fees, and no annual fees—and is free from federal taxes. Tuition Plan Consortium, LLC is the program sponsor and TIAA-CREF Tuition Financing, Inc. is the program manager. Tuition is guaranteed by member colleges.
2. Who is the program manager?
Independent 529 Plan is administered by TIAA-CREF Tuition Financing, Inc. (TFI), the country's leading manager of Section 529 programs. TFI provides administrative, service, and marketing support to the program. TFI's affiliate in the TIAA-CREF group of companies, TIAA-CREF Trust Company FSB, is the trustee for the program trust within which Independent 529 Plan is required to hold all program assets. The TIAA-CREF organization is the nation's largest pension fund manager.
3. What college participate?
Independent 529 Plan includes a wide range of private colleges and universities to fit the talents and interests of all students when they're ready to select a college. Member institutions include: historically Black colleges, religiously-affiliated colleges, research universities, science & engineering institutions, traditional liberal arts colleges and women's colleges. Currently, there are 260 colleges to choose frome. You can view the list of participating colleges by state .
4. What are the Advantages of Independent 529 Plan?
The Affordability of a College Savings Program, with Future Tuition at Less than Today's Price - Since the Independent 529 Plan is a prepaid tuition program, not an investment account, it allows you to save money for college tuition by locking in the current tuition prices at the time of purchase, and by offering a discount on tuition overall.
Flexibility to Choose from Some of the Nation’s Top Schools — Unlike many state pre-paid plans, which only apply to in-state, public universities, Independent 529 Plan can be used at any college in the plan. New member institutions are signing up all the time, giving your future student even more choices.
Enroll at Anytime, Add to Your Account at Any Time — Since every family's needs are different, Independent 529 Plan offers a number of ways to participate. One can, prepay the full cost of serveral years into a set amount each month. The more and earlier you prepay, the greater the percentage of tuition you can lock in at less than today's price. However, you can also start small by contributing as little as $25 a month as long as a minimum of $500 is accumulated within two years.
No Entry Fees, No Annual Fees, No Exit Fees — All costs of administering the program, managing the assets, and running the Tuition Plan Consortium office are paid for by an annual management fee, which is picked up by the member colleges. That means that you pay no fees, and your entire contribution is applied directly to tuition.
All Federal Tax-Free — The increase in value between the amount of original purchase and the amount of tuition for which the certificate is redeemed is federal tax-free. Certificates are in the name of the child and can be applied at any participating institution, including colleges and universities that join after the certificate was originally purchased. Independent 529 Plan is also tax-free in most states. You will need to check with your local tax advisor regarding your state.
High Contribution Limits — Overall contribution limits to Independent 529 Plan are designed to cover the tuition and fees for five years at the most expensive college or university in the plan (which is $177,500 for the 2007-2008 school year).
No Special Eligibility Requirements, No Income Limits for Participation — There are no special eligibility requirements to take advantage of Independent 529 Plan. There are no income limits for participation. If you are an adult U.S. resident who wants to help fund a private college education for children, grandchildren or any loved one, you are eligible. In addition to opening an account for a named beneficiary, you can open an account in the name of a trust or estate. Qualified organizations can also open accounts for scholarships for unnamed beneficiaries.
5. Need Additional Information?
Website: www.independent529plan.org
Phone: 1 (888) 718-7878
Write to:
| Independent 529 Plan or Independent 529 Plan |