LoneStar 529 PlanSM Overview
The LoneStar 529 Plan is an advisor-sold 529 college savings plan that provides families with a way to save for college that also provides federal tax benefits.
Why Choose the LoneStar 529 Plan?
The LoneStar 529 Plan can help make saving for college easier. It offers a wide range of benefits, including investment management expertise, affordable costs and automatic investing options.
The LoneStar 529 Plan Investments
The LoneStar 529 Plan offers both static and age-based portfolios to help you work toward your savings goals. Static portfolios allow you to make your own judgments about your tolerance of risk and time horizons, while age-based portfolios automatically shift to more conservative investments as your beneficiary nears college age.
Investing Basics
How do you balance risk and reward? How do you allocate your assets? We can help you understand the basics of investing so that you and your loved ones can start saving with confidence.
Features
Tax-free Growth
Earnings in the plan are free from federal income tax for the life of the account.
Tax-free Withdrawal
You can withdraw money from your account without paying federal income tax, as long as it’s used to pay for qualified higher education expenses. When withdrawals are used for other purposes, the earnings portion of the withdrawal is subject to federal income taxes and an additional 10 percent federal tax.
Use Your Savings at Schools in the U.S. and Abroad
You can use the savings from the LoneStar 529 Plan to pay for qualified higher education expenses at most accredited institutions in the U.S., including vocational schools, two- and four-year colleges, universities and graduate schools, as well as some foreign institutions.
Choose Your Beneficiary
Put money away for future higher education costs, for your child, grandchild, relative, friend, spouse or even yourself.
Control and Flexibility
Because the 529 account is in your name, you control when and how it is used. Only you can decide when and how much to contribute and when to make withdrawals.
You can even change beneficiaries among qualified family members without penalty or tax implications.
It doesn’t take a lot to get started
Any U.S. resident can open or contribute to a plan account, including parents, grandparents, aunts, uncles and even family friends. And they can do so for as little as $25 to start and $15 for future investments.
It’s fast and easy to enroll
Go to www.lonestar529.com to enroll online or call toll free at (800) 445-GRAD (4723) for an enrollment kit.
No matter how you open your account, be sure to read the plan description on the LoneStar 529 Web site carefully. It outlines the risks and expenses associated with investing
in the plan. Investments are market-based and may rise or fall in value.
Not FDIC insured and not guaranteed. Established and maintained by the Texas Prepaid Higher Education Tuition Board.
