LoneStar 529

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Features


 

Tax-free Growth

Earnings in the Plan grow federal income tax free for the life of the account.

Tax-free Withdrawal

You can withdraw the money federal tax free, 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, any applicable state tax and an additional 10% federal tax.

Use Your Savings at Schools in the U.S. and Abroad

You can use your savings to pay for qualified higher education expenses at most accredited institutions in the U.S., including vocational schools, two- and four-year colleges and graduate schools, as well as at some foreign institutions.

Choose Your Beneficiary

Put money away for future higher education costs—whether for your child, grandchild, relative, friend, spouse or even yourself. Get more information on gifting.

Control and Flexibility

Because the 529 account is in your name, you retain control over when and how the savings are used. You decide when and how much to contribute, and control when to make withdrawals.

You can even change beneficiaries among qualified family members without penalty or tax ramifications.

Broad Range of Investment Options

The LoneStar 529 Plan lets you pick your path by offering numerous investment portfolios based on risk tolerance, time horizon and financial situation. It's easy to find one that suits your particular needs.