Texas Comptroller’s Office Announces Reduction in Some Fees, Changes to the Advisor-Sold LoneStar 529 Plan

(AUSTIN) — Comptroller Glenn Hegar announced today that the state’s tax-advantaged, advisor-sold college savings plan, the LoneStar 529 Plan®, implemented the following enhancements – including a reduction in some fees – that were effective March 7:

  • Reduction in the front-end sales charge for Class A shares from 5.75% to 2.75%;
  • Reduction in total plan level fees, including the program management fee, the state administrative fee, and the estimated underlying investment expenses;
  • A change from Age-Based Portfolios to Target Enrollment Year Portfolios to allow more flexibility for investors to select a portfolio based on when they plan to use the account and their risk tolerance; and
  • Introduction of a new Registered Investment Advisor (RIA) share class with no sales charges or asset-based distribution/service fees. (Fees may be assessed separately by the financial advisor.)

More detailed information about the changes to the Plan can be found in the Transition Guide and updated Plan Description and Savings Trust Agreement available on our website at LoneStar529.com.

The LoneStar 529 Plan is administered by the Texas Prepaid Higher Education Tuition Board, with assistance from the Comptroller’s office.

Individuals can enroll in the Plan through their financial advisor. LoneStar 529 Plan account withdrawals, including any earnings, are not subject to federal income tax if used for qualified education expenses.

For more information on the Plan, including investment options, fees and opening an account, call 844-445-4733, Option #4 or visit LoneStar529.com.

Comments are closed, but trackbacks and pingbacks are open.