The Tennessee Investments Preparing Scholars (TIPS) program was created to encourage families of all income levels to save for the growing costs associated with post-secondary education.
A program of the Tennessee Treasury Department, TIPS is a matching grant program offering incentives to participate in the TNStars® College Savings 529 Program to Tennessee residents meeting certain household income requirements. When a qualifying family establishes a TNStars® account and enrolls a beneficiary in the TIPS program, the state will provide a 4-to-1 matching contribution. That’s $100 for every $25 contributed by the account holder. Beneficiaries can receive a maximum match of $500 per year for up to three years.
If you are a Tennessee resident and your income does not exceed the limits below, you may qualify for a 4-to-1 match for college savings.
2015-2016 Total Federal Adjusted Gross Income*
Persons in a Family or Household
1 = $29,425
2 = $39,825
3 = $50,225
4 = $60,625
5 = $71,025
6 = $81,425
7 = $91,825
8 = $102,225
For family units of more than eight (8) members, add $4,160 for each additional person.
*Beginning in January 1, 2017 through June 30, 2017, TIPS applicants may submit either the 2015 or 2016 tax return with the TIPS program application.
Get started today!
1. Open a TNStars® account with a minimum contribution of $25.
2. Complete the TIPS application, which you can find below.
3. Submit a tax return or transcript for each income earner in the household.
All incentives are for Tennessee residents only. Certain eligibility requirements apply for the TIPS incentive. Only one incentive offer per beneficiary. In the event that more than one account for any one beneficiary qualifies for an incentive listed above, the incentive amount will only be applied to the first of the beneficiary’s qualifying accounts. Section 529 plans provide federal tax benefits under the Internal Revenue Code that may apply to you. 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. Consider all investment objectives, risks, charges, and expenses before investing in the TNStars College Savings 529 Program. Please visit www.TNStars.com or call us toll free at 855-386-7827 for a Disclosure Brochure containing this and other information. Read it carefully. Investments in the plan are neither insured nor guaranteed and there is a risk of investment loss.