Benefits & Tax Advantages


Make the Connecticut Higher Education Trust (CHET), Connecticut’s direct-sold 529 college savings plan, a part of your savings strategy.

Many families hope to see their child or loved one graduate from college someday, but it takes more than hope. The Connecticut Higher Education Trust is a 529 plan that can help your family get there.

Investing in education is a smart move and the tax advantages built into CHET can make it an important part of your overall college funding strategy:

Tax Advantages

> See the Difference Tax Advantaged Savings Can Make.

Earnings Can Grow Federal and Connecticut Income Tax-deferred
When you contribute to CHET, your account earnings have the opportunity to grow federal and Connecticut income tax-deferred until withdrawn.

Any Earnings Used to Pay for Qualified Higher Education Expenses Are Federal and Connecticut Income Tax Free
The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and Connecticut income tax.

Connecticut Income Tax Deduction
You may also be eligible for a Connecticut income tax deduction. The amount contributed by a Connecticut taxpayer to a CHET account during a tax year is deductible from Connecticut adjusted gross income in an amount not to exceed $5,000 for a single return or $10,000 for a joint return for that tax year. Connecticut taxpayers may deduct from their Connecticut adjusted gross income contributions made to one or more CHET Accounts during the tax year up to these annual contribution deduction limits: (1) $5,000 for an individual who is single, head of household, or married/civil union filing separately; and (2) $10,000 for an individual who is married/civil union filing jointly, or qualifying widow(er) with dependent child. These limits apply on an aggregate basis (not a per beneficiary basis) to all contributions made to all CHET Accounts during the tax year. Connecticut taxpayers may not claim a deduction for a rollover into a CHET account from a non-CHET account or for a transfer into a CHET account from a Coverdell education savings account.

Federal Estate and Gift Tax Benefits
Contributions to CHET may reduce the taxable value of your estate. For example, contributions to the Plan, together with all other gifts from the Account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $13,000 per donor ($26,000 for married contributors), per beneficiary. If an account owner's contribution to a CHET account for a beneficiary in a single year exceeds $13,000 ($26,000 for married contributors), the account owner may elect to treat up to $65,000 of the contributions, or $130,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion. Consult your tax advisor.

Flexible Features

Anyone Can Open an Account
Parents, grandparents, relatives and friends who are U.S. citizens or resident aliens and at least 18 years of age may open a CHET account and contribute on behalf of a beneficiary. Connecticut state residency is not required. However, investors residing outside of Connecticut should consider their own state's plan first as it may have tax advantages that are only available through that state's plan.

Funds Can be Used at Eligible Schools Nationwide
Whether your 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 any eligible higher educational institution in the nation and many abroad.

Funds Can be Used for a Variety of Qualified Expenses
Funds can be used for tuition, mandatory fees, books, supplies, and equipment required for enrollment or attendance; certain room and board costs, certain expenses for "special needs" students.

Range of Investment Options

Choice of Investments
CHET offers 11 Investment Options so you can choose an investment strategy that best suits your needs.

Low Minimum Contribution
It's easy to open an account with CHET. You have many ways to contribute and convenient ways to enroll. The minimum initial contribution is $25 per Investment Option. The minimum subsequent contribution to an account is $25 per Investment Option. However, if your employer allows payroll deduction, the minimum subsequent contribution to your Account may be as low as $15 per Investment Option per pay period.

No Income Limitations
There are no income limitations to open a CHET 529 plan account.

High Maximum Account Contribution
You can contribute as much as $300,000 per beneficiary account as long as the total balance of all accounts for that beneficiary does not exceed $300,000. Accounts that have reached the maximum account balance limit may continue to accrue earnings.

Ability to Transfer to Another Beneficiary
If your original beneficiary decides not to go to college, or receives a scholarship, you can name another eligible beneficiary for your account. The new beneficiary must be a member of the previous beneficiary's family, as described in the Disclosure Booklet (PDF), in order to avoid having this change treated as a non-qualified withdrawal.

Low Plan Fees

With CHET, there are no sales charges, start-up or maintenance fees. An annual asset-based management fee will be paid to TIAA-CREF Tuition Financing, Inc. to cover the cost of investment management and administrative services. The total asset-based fee (program management fee plus cost of underlying funds) range from 0.32% to 0.95% of the average daily net assets of your account depending upon the option. The Principal Plus Interest Option does not have a program management fee.

The Treasurer of the State of Connecticut, acting as Trustee for CHET, collects a state fee of 0.01% of the average daily net assets of the Trust annually to pay for expenses related to the oversight of the Trust. This state fee applies each Investment Option (with the exception of the Principal Plus Interest Option). See fee table and sample investment cost. The State reserves the right to change the current fee and impose new or additional fees, expenses, charges, or penalties in the future.

Managed By A Leading Financial Services Provider

The Connecticut State Treasurer's Office selected TIAA-CREF Tuition Financing, Inc. to serve as plan manager for CHET. TIAA-CREF Tuition Financing, Inc. is an affiliate of TIAA-CREF, a financial services organization with more than 90 years of investment experience. Visit TIAA-CREF.

Easy Access to Your Account

You'll have online access to your Account information 24 hours a day, or you can call and speak to one of our college savings specialists Monday through Friday, 8:00 am - 8:00 pm Eastern Time. You'll receive quarterly and annual statements that show account activity. A separate confirmation statement will also be mailed following each transaction in your account.

You can also perform the following account transactions online: request a withdrawal from your account; rebalance funds among Investment Options, request e-Statement versus paper delivery, request e-Disclosure of Plan Disclosure Booklet and Participation Agreement and the Privacy Policy versus paper delivery, establish or change automatic contributions and view pending account contributions.

Funds Can be Used at Eligible Institutions Nationwide

Whether your 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 any eligible higher educational institution in the nation and many abroad.


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