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They … The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Designating the distributee. Just don’t wait until the last day of the year to go through this exercise. Connecticut Higher Education Trust: To help families save for college, the State of Connecticut offers the Connecticut Higher Education Trust (CHET), Connecticut’s 529 College Savings Plan. "Tax Benefits for Education," Page 59. Or if the withdrawal occurs in December for expenses previously paid during that year. The Connecticut Higher Education Trust (CHET) 529 College Savings Advisor Program is only open to Connecticut state residents through a financial advisor. They also avoid the risk that the school’s financial aid office will view the payment as some sort of scholarship, and reduce the student’s financial aid package accordingly. Similar to other TIAA-managed 529 savings programs, the Connecticut Higher Education Trust (CHET) features three age-based options along with eight static investment options. Connecticut has two 529 plan options - one consumer plan and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this). At the end of 2015, congress passed and the president signed a bipartisan bill called the ABLE Act that expands the current 529 college savings program to allow tax-free accounts to be used for children with a disability. Both tuition and fees for full and part-time students can be paid with 529 plans. If the client keeps funds, it is still a distribution? Whether you live on campus or off, you can use your 529 plan spending for your room and board expenses. Start an account in 15 minutes with only $25. Your 529 savings cannot be used for your car, bus, airfare, and gas expenses, even if you are using these to get to college. 4 of 5. Here are six mistakes you’ll want to avoid: 1. Penalties. Program Manager. Saving for college? ABLE Accounts. Your 529 plan has specific rules for spending in return for those 529 tax benefits and other advantages. CHET is a tax-advantaged, low cost savings program specifically designed to help families save for future college costs. A non-qualified withdrawal from a Connecticut 529 plan made to the account beneficiary are exempt from state taxes. It doesn’t matter if funds are withdrawn in January for expenses that are not paid until August. While transportation is usually not covered, if you have special needs, your transportation needs may be covered expenses. Section 529 and Coverdell Account Sunset Provisions. 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