529 College Savings Plans
A 529 College Savings Plan allows individuals to save tax-deferred for future educational expenses. If such a plan is used to pay for approved educational expenses, withdrawals from 529 accounts can be tax-free. There are well over 50 such plans available to individuals. TIAA and Fidelity handle 529 plans, the State of Arkansas Treasurer’s Office sponsors a 529 plan, and any number of other states also sponsor 529 plans.
Because these are individual plans, there is not a University of Arkansas group 529 plan, not does the University favor or recommend a particular 529 plan. 529 plans are entirely voluntary; there is no requirement to participate. They are not group or employer retirement savings or investment savings plans and are complete separate from the University’s 403(b) Retirement Plan. The University does not make employer contributions to 529 plans.
Individuals should carefully evaluate plans, investment choices and fees before selecting a 529 option. Fees with different 529 plan vendors can vary significantly and do impact the amount of money saved in a plan.
Representatives with the Arkansas Treasurer’s office, TIAA and Fidelity can assist with questions and enrollments in a 529 plan.
- Fidelity introduction to 529 plans (brainshark presentation), Fidelity website, 1-800-544-1914
- TIAA website 1-800-842-2252
- Arkansas Treasurer’s Office (501) 682-1406