The Tennessee Treasury Department is extending a promotion that allows Tennessee residents who sign up for the state’s TNStars College Savings 529 Program to receive a $50 match for the first $50 they invest in the program. The matching funds promotion will be available through June 30.
TNStars is a cost effective, easy way for Tennesseans to start saving for their children’s or grandchildren’s college education. The Tennessee Treasury Department estimates that college tuition and fees are rising by at least seven percent per year. So saving is not an option - it’s a must, officials said.
TNStars is a college savings plan created by Tennesseans, administered by Tennesseans, for Tennesseans that allows participants to choose from 15 investment options, ranging from conservative to aggressive. The plan offers low investment fees and money earned on those investments may be withdrawn tax-free, provided it is used to pay for qualified educational expenses for the account’s beneficiary. In fact, the funds can be used at thousands of public or private universities, community colleges, technology centers, vocational schools and any post-secondary institution that is eligible to receive U.S. Department of Education student loan funds.
An account can be established for as little as $25, but Tennessee residents who invest $50 or more will each receive $50 in matching funds from the state deposited into their accounts. In addition to the $50 match, Tennessee residents who roll over their entire account balances to TNStars from other states’ 529 college savings programs or Tennessee’s prepaid tuition program will each receive $100 in incentive funds deposited into their TNStars accounts.
Officials said, "More than 1,000 Tennesseans have opened accounts - so don’t be left out. The $50 match and the $100 rollover incentive are some of the keys to help your child or grandchild get the education and training needed for the 21st Century Tennessee specialized workforce."
“This is an easy way people can double their money while investing,” Treasurer David H. Lillard, Jr. said. “I hope this will give Tennesseans the encouragement they need to start accounts with TNStars on behalf of their children, grandchildren, other relatives or family friends. If account holders will commit to saving even small amounts of money on a regular basis, that will add up over time. And providing the money needed to attend college can help our children build better futures - both for themselves and for our state.”
Anyone interested in learning more about TNStars may visit www.TNStars.com or call toll-free to 855 386-7827.
Officials said, "Consider all investment objectives, risks, charges, and expenses before investing in the Tennessee Stars College Savings 529 program. Please visit www.TNStars.com or call toll-free at 855 386-7827 for a Disclosure Booklet containing this and other information. Read it carefully. Non-Tennessee taxpayers and residents: If you are not a Tennessee taxpayer, you should determine whether your home state offers a 529 plan that provides state tax or other benefits not available to you by investing in this program. You should consider such state tax or other benefits, if any, before investing in this program."