Federal tax-free earnings if the money is used for higher education expenses.
Availability to anyone regardless of income level. Parents, grandparents, aunts, uncles, and friends can open accounts on behalf of children.
Contributions qualify for a $14,000 annual federal gift tax exclusion. Also, a lump sum of $70,000 may be contributed to a 529 plan and treated as if it were made over a five-year period to completely avoid the federal gift tax.
Plan contributions aren’t considered to be a part of an estate for federal tax purposes. Account owners still retain control of the accounts, but do not pay federal estate taxes on the value of the accounts. But if a gift is spread over five years and the account owner passes away within the five years, a portion of the gift will be included in the estate.
Consider all investment objectives, risks, charges, and expenses before investing in the TNStars College Savings 529 program. Please call us toll-free at 855-386-7827 for a Disclosure Brochure 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.