Tennessee launches app to manage 529 college savings plans

A release from the state Department of the Treasury:

NASHVILLE, TN – The Tennessee Department of Treasury annually recognizes 529 Day to raise awareness of the importance of saving for a child’s future education. May 29 is nationally recognized as 529 College Savings Plan Day, and it’s an excellent time to become a TNStars College Savings 529 account holder!

When you become a TNStars customer, you will have another useful way to put college savings in the palm of your hand, with access to the new ReadySave529 education savings mobile app. TNStars partnered with Ascensus financial services to offer the app, which makes it easier to view your account balance and investment allocation, contribute funds, and see how your savings compare to peers. It also makes it even easier to invite family and friends to make gift contributions to your child’s account.

So, what is a 529 Plan? It’s named after Section 529 of the Internal Revenue Code that authorizes tax-free status for qualified tuition programs. Earnings in 529 plans accumulate on a tax-deferred basis and distributions are not taxed federally when used for qualified higher education expenses. A 529 plan can be used to pay for college costs at any qualified college nationwide.

With TNStars, a parent, grandparent, family member, employer, or friend can make gift contributions to an account. Earnings grow tax-free, and money can be used for tuition and fees, room and board, books, computers and more. The Tennessee Department of Treasury monitors the plan’s investment options and works to keep costs low so families can save even more.

Families can visit tnstars.com to open an online account in minutes with as little as $25. Once you open a TNStars account, the app is available for download in the Apple and Google Play app stores.

“May 29 is an excellent annual reminder of the importance of saving for a child’s future in a 529 college savings account, such as TNStars,” said State Treasurer David H. Lillard, Jr. “With the mobile app, we can provide technology to better connect TNStars customers to their accounts. That’s something worth celebrating on 529 Day.”

Join the conversation about 529 Day and the new app by following TNStars on Facebook, Twitter and Instagram (#529Day).

2 Responses to Tennessee launches app to manage 529 college savings plans

  • Avatar
    Cryan says:

    Can you use it to buy Dogecoin?

  • Avatar
    MARLE says:

    1) A 529 plan counts as an asset and could end up costing your child some degree of financial aid eligibility.

    2) You do not have much flexibility of what the fund invests in as you would if You invested it outside of the plan

    3) If it is Not used for Education Costs, the growth proceeds will be taxed at the Marginal Fed Income tax rates not at the Capital Gain rate which is much lower and would have been an option had you invested outside of the plan.

    It’s a forced savings concept that works great for the undisciplined. If you needed a Christmas Club in order to be able to afford gift buying (to keep you from blowing money for other things) then this is a swell plan for you.

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