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Give Your Clients One More Reason to Rely on Your Financial Guidance

After saving for retirement, planning for a child's college education is the next big financial challenge for many of your clients. Discuss college planning with all your clients and prospects, and let them know that opening a Connecticut Higher Education Trust Program (CHET) account is a smart way to help prepare for a child's future higher education.

Become an expert on 529 College Savings Plans. Your clients will thank you.

Earnings Grow Federal and Connecticut Income Tax-deferred
When your client contributes to CHET, their account earnings have the opporunity to grow federal and Connecticut income tax-deferred until withdrawn.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. This federal income tax-free treatment of qualified withdrawals and other federal tax benefits are now permanently in place for 529 plans through the passage of the Pension Protection Act of 2006.

Connecticut Income Tax Deduction
Your client may also be eligible for a Connecticut income tax deduction. The amount contributed by a Connecticut taxpayer to CHET accounts 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.

The Connecticut income tax deduction applies to contributions made in calendar year 2006 and beyond, including contributions dating back to January 1, 2006.

The Connecticut Department of Revenue Services (DRS) recently issued interpretive guidance regarding the Connecticut income tax deduction under Connecticut tax law. This guidance, in the form of frequently asked questions and answers, is available through DRS's website at www.ct.gov/drs. Please refer to this link for additional information on the Connecticut income tax deduction. You can also contact DRS at 1-800-382-9463.

Federal Estate and Gift Tax Benefits
Contributions to CHET may reduce the taxable value of your client's estate. Contributions to CHET, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $12,000 per donor, per beneficiary for 2008. If an account owner's contribution to a CHET account for a beneficiary in a single year exceeds $12,000, the account owner may elect to treat up to $60,000 of the contributions, or $120,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion.

WE'RE HERE TO HELP

Call us toll-free at 1-888-799-2438 to:

Meet with a CHET program representative
Arrange CHET seminars or webinars at your location
Order CHET Program Brochures (PDF, 277KB), table top signs and other promotional materials

Remind your clients that they can set up an Automatic Contribution Plan (PDF, 157KB) or use Payroll Deduction (PDF, 45KB) for their contributions (if offered by their employer).

Payroll Deduction Form, State of Connecticut employees (PDF, 75KB)

Authorization to access CHET Accounts. Get form here.

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. TFI's affiliate, TIAA-CREF Individual & Institutional Services, LLC, is the distributor.

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.