Human Resources - CHET - Connecticut Higher Education Trust 529 College Savings Program
A college education is one of the best investments you can make in a child’s future.
To help employees get started on saving for college, the State of Connecticut offers you a flexible, tax-advantage program – CHET, Connecticut’s College Savings Program. Employees may contribute to this program through the ease of payroll deduction.
Use at Schools Nationwide
Whether your child or beneficiary decides to go to a private or public college or university, in state or out-of-state, trade or graduate school, funds in the account may be used at thousands of eligible higher educational institutions in the nation and many abroad. Your savings may be applied toward tuition as well as related expenses such as books, supplies, required fees and certain room and board costs.
Tax Advantages
Contributions made to a CHET account are on an after-tax basis and therefore are not deductible for income tax purposes. However, your account may grow tax deferred. Earnings on any distributions used to pay for beneficiaries qualified higher education expenses will be free from federal income tax. (The law allowing federal tax-free withdrawals is set to expire on December 31, 2010. Congress may or may not extend this law beyond that date). CHET withdrawals for qualified expenses have always been free from Connecticut Income Tax.
Minimum Contributions:
An account may be opened with as little as $25 per investment option by check, money order, electronic funds transfer, or by Automatic Contribution Plan. You can also contribute as little as $15 per investment option per pay period using payroll deduction through participating employers.
Enrollment
Enrollment into the CHET program is done directly through TIAA-CREF Tuition Financing, INC., either through the website www.aboutchet.com or by calling 1-888-799-CHET (2438).
Program Details
Employees may view the entire program online through a dedicated state website, www.aboutchet.com or may call 1-888-799-CHET (2438) to request information.
TIAA-CREF Tuition Financing, ING (TFI) serves as CHET’s program manager. TFI, an SEC-registered investment advisor, manages CHET investments and provides investment advisory services. TFI is a part of the TIAA-CREF group of companies, a nationally recognized financial services organization.
