Connecticut Higher Education Trust

Glossary

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Section 529
Section 529 of the Internal Revenue Service Code, the section that specifies the requirements for qualified tuition college savings programs (529 plans).

Sunset Provision
The Sunset Provision is the provision of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that stated that the law allowing federal income tax-free qualified withdrawals was set to expire December 31, 2010. The Sunset Provision as it affects the federal tax-benefits of qualified withdrawals on 529 plans is no longer a concern. Federal income tax-free treatment of qualified withdrawals and other federal tax benefits are permanently in place for 529 plans through the passage of the Pension Protection Act of 2006.

TIAA-CREF Tuition Financing, Inc.
TIAA-CREF Tuition Financing, Inc., (TFI) is part of TIAA-CREF, a financial services organization with more than 90 years of investment experience. TFI is a wholly owned subsidiary of Teachers Insurance and Annuity Association of America, a stock like insurance company organized under the New York insurance laws. 

Title IV Participation
Institution has a Program Participation Agreement with the US Department of Education (the Department) for eligible students to receive Pell Grants and, depending upon the agreement, other federal aid. For an institution to participate in Title IV financial aid programs it must offer a program of at least 300 clock hours in length, have accreditation recognized by the US Department of Education, have been in business for at least 2 years, and have signed a participation agreement with the Department.

Traditional (Classic) IRA
See IRA.

UGMA
Uniform Gift to Minors Act. Laws adopted by most states allowing an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. Thus, minors can have securities bought and money invested in their names, but the custodian is responsible for managing the funds in the account. The custodian has a fiduciary duty to manage the account prudently, but once the minor reaches the age of majority, he/she has complete rights to the funds in the account. The assets are the legal property of the minor, and the parent has no legal control over the uses of the proceeds of the account. All withdrawals from the account are taxed at the minor's rate. Putting money into a UGMA account can negatively impact the chances for financial aid, since financial aid officers weigh children's assets much more heavily than parents' assets.

UTMA
Uniform Transfers to Minors Act. Law which extends the Uniform Gift to Minors Act's definition of a gift to include real estate, fine art, patents and royalties.

Website
www.aboutchet.com


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Not Sure Where to Begin?
  1. Use the calculators to see how much college will cost and how much you need to save.
  2. Read the FAQ and the CHET Disclosure Booklet and Participation Agreement (PDF, 2,144KB), or call us toll-free at
    1-888-799-CHET (2438).
  3. Open a CHET account today.

Don't forget you can set up an Automatic Contribution Plan (PDF, 157KB) or use Payroll Deduction (PDF, 45KB) for your contributions (if offered by your employer).

PDF files require the free Adobe Acrobat Reader. Get it here.

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The tax information contained on the Connecticut Higher Education Trust (the Plan) Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The Plan is administered by the Connecticut State Treasury. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager.

The investment approaches described are not recommendations and do not take into consideration personal goals or preferences. After evaluating information you consider important in making an investment choice, the ultimate decision is up to you. It is a good idea to revisit your investment strategy periodically as your goals, personal financial situation, and market conditions change.

Consider the investment objectives, risks, charges and expenses before investing in the Plan. Please call toll-free 1-888-799-2438 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Connecticut, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general market conditions.

The Plan Web site is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet.

The Plan Web site contains links to other Web sites. Neither the Plan Trust nor TFI and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

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© 2010 TIAA-CREF Tuition Financing Inc.