The first payment due date is May 1, 2024, for Contracts established during the Plan’s 2023-2024 Enrollment Period: Each year the Board sets an annual open Enrollment Period that typically begins on Sept. 1 and ends on the last day of February of the following year. However, newborns may be enrolled through July 31 of each year.
“Sales period” means the year-long period from Sept. 1 through Aug. 31 during which a Purchaser who has established a Contract may make purchases under the Contract. The enrollment period for establishing new Contracts is Sept. 1 through Feb. 28 each year (Feb. 29 in a leap year). Enrollment for newborns or children younger than 1 year of age extends through July 31.
Yes. Texas law provides that assets in an account may not be considered in determining eligibility for Texas state-funded student financial aid. Also, assets in an account are exempt from attachment, execution, and seizure in Texas for the satisfaction of debts under Texas law. Please refer to the Plan Description and Master Agreement for more information.
If you have not already established an online account login, you can do so on the User Set Up page.
Follow the instructions:
Note: The account number can be found on the confirmation that you received when you established the account, on the annual statement, or by calling us at 1-800-445-4723, Option #5.
Account beneficiaries will still be eligible to use their Tuition Units if they or the Purchaser moves to a different state. Residency, for purposes of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. paid by the Plan, is established at the time of purchase of Tuition Units and carries through to redemption, no matter where the Beneficiary or Purchaser resides at the time of redemption. Semester hours not covered by the Plan may be charged by the institution at the out-of-state resident rate and will be the responsibility of the Purchaser or Beneficiary.
No. The Texas Guaranteed Tuition Plan, also known as the Texas Tomorrow Fund, was offered as the original Texas prepaid plan opened in 1995. It closed to new enrollment in 2003.
While the Texas Tuition Promise Fund is not constitutionally guaranteed, Texas law requires all Texas two-year and four-year public colleges and universities to accept Texas Tuition Promise Fund Tuition Units as payment for the applicable portion of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. This law does not apply to medical or dental institutions, private or out-of-state colleges or universities, career schools or registered apprenticeship programs, but the Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of Tuition Units may be applied toward costs at those schools or apprenticeship programs. The Transfer Value of the units being redeemed will be the lesser of: 1) the costs the Tuition Units would pay at a public in-state college or university, or 2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
The Contracts are not deposits or other obligations of any depository institution. Neither a Contract nor any return paid with a refund is insured or guaranteed by the FDIC, the state of Texas, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or Orion Advisor Solutions, Inc. or its affiliates. The Contracts have not been registered with the U.S. Securities and Exchange Commission or with any state.
Purchasers should carefully consider the risks, administrative fees, service and other charges and expenses associated with the Contracts, including plan termination and decreased transfer or refund value.
All forms are available here.
The Texas Match the Promise FoundationSM awards scholarships to fifth- through ninth-graders who are enrolled in the Texas Tuition Promise Fund. The foundation encourages families to save for college by supplementing their contributions to the plan. Eligible students can apply between Sept. 1 and Dec. 31. More information on the scholarships and eligibility requirements can be found at MatchThePromise.org.
For any tax year during which there was a distribution from your account, an IRS Form 1099Q will be issued.
Distributions will be reported to the IRS as follows:
| Type of Distribution | IRS Form 1099Q Taxable Party |
|---|---|
| Payments to Colleges and Universities | Beneficiary |
| Scholarship Refund | Purchaser |
| Voluntary Cancellation Refund | Purchaser |
| Involuntary Cancellation Refund | Purchaser |
Qualified withdrawals are not subject to federal income tax.
If you withdraw more than your qualified higher education expenses for any tax year, or use a refund for anything other than qualified higher education expenses (a “nonqualified withdrawal”), a portion of the nonqualified withdrawal may be subject to federal and, if applicable, state income tax, and may be subject to an additional 10% federal tax. If a nonqualified withdrawal was distributed to your school for your benefit, you will be responsible for the tax. Otherwise, the account Purchaser will be responsible for the tax.
Distributions will be reported to the IRS on Form 1099Q as follows:
| Type of Distribution | IRS Form 1099Q Taxable Party |
|---|---|
| Payments to Colleges and Universities | Beneficiary |
| Scholarship Refund | Purchaser |
| Voluntary Cancellation Refund | Purchaser |
| Involuntary Cancellation Refund | Purchaser |
Generally, withdrawals due to the Beneficiary’s death, disability, receipt of a scholarship (to the extent the withdrawal does not exceed the scholarship amount), attendance at a U.S. Military Academy, or use of Education Tax Credits are not subject to the additional 10% tax. For more details, please see the Plan Description and Master Agreement.
The Board will aggregate the earnings portion of all annual contract distributions having the same Purchaser and same Beneficiary into a single IRS Form 1099Q. In addition, if there are any other contracts with the same Purchaser and Beneficiary under the Texas Guaranteed Tuition Plan, also known as the Texas Tomorrow Fund (or any other prepaid tuition plan which may be established by the state of Texas), those contracts will also be aggregated with your Texas Tuition Promise Fund® account for these purposes.
Yes, the following exceptions apply:
You should consult your tax advisor before making a nonqualified withdrawal.
The Texas Tuition Promise Fund Student Handbook is available online and may provide answers to your questions or you can contact Customer Service at 1-800-445-4723, Option #5.
The first payment due date is May 1, 2024, for Contracts established during the Plan’s 2023-2024 Enrollment Period: Each year the Board sets an annual open Enrollment Period that typically begins on Sept. 1 and ends on the last day of February of the following year. However, newborns may be enrolled through July 31 of each year.
Automatic debits and payments are debited on the first business day of each month.
Yes. You can either make a onetime payment on your contract or schedule recurring payments under the Financials tab at access.texastuitionpromise.com. You also always have the option to make a payment by direct deposit, check, money order or payroll deduction.
Yes, you may increase or decrease the number of Tuition Units that you want to purchase on an existing installment contract at any time during the Sales Period, with the following exception. If you want to add an installment plan to an existing contract that has no pre-existing installment plan, the new installment plan may only be added during an Enrollment Period.
As noted above, you may decrease (downgrade) the number or type of Tuition Units that you want to purchase at any time. You can also cancel or terminate a contract at any time and for any reason and receive a refund. However, the value of your refund will depend on when and why you cancel the Contract. See Cancellations and Refunds for information on how refunds are calculated. Earnings on nonqualified withdrawals are subject to federal, state, and local income taxes and any applicable income tax penalties. Please refer to the Plan Description and Master Agreement for more information.
If you choose Type I Tuition Units, 100 units can be redeemed to pay 30 semester hours (two 15-hour semesters) or one academic year of tuition at the most expensive Texas public college or university in the year of redemption. Fewer Type I units would be required for a lower priced four-year or two-year school.
If you choose to purchase Type II Tuition Units, your 100 units will pay for 30 semester hours or approximately one academic year of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at a college with tuition and schoolwide required fees equal to the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. cost of tuition and schoolwide required fees of most Texas four-year public colleges and universities, excluding medical and dental institutions. Therefore, if your Beneficiary attends a Texas public school that costs more than the weighted average cost, you will either need to use more units to cover the tuition and schoolwide required fees or pay the difference out-of-pocket. If the school chosen costs less than the weighted average school, you will need to redeem fewer than 100 units for 30 semester hours. For more information, see the Pricing Schedule and Redemption Guide.
Because the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. falls somewhere in the middle, many Texas public colleges and universities will cost more than the weighted average, and many will cost less. If your child attends a Texas public four-year college that costs more than the weighted average, you will need more Type II Tuition Units than if your child attended a Texas public school at the weighted average cost. If your child attends a school that costs less than the weighted average, you will need less Type II Tuition Units.
The number of
Type II Units:
The assigned value of a Type II Tuition Unit is 1% of the Weighted Average cost of undergraduate resident tuition and required fees for the applicable academic year consisting of 30 semester credit hours with an assumed 15 hours per semester charged by General academic teaching institutions (four-year public colleges) in Texas. Type II Tuition Units cover the same four-year Texas public colleges as Type I Tuition Units, but only pay the Weighted Average Cost of undergraduate resident tuition and required fees at Texas public four-year colleges and universities. Any difference not covered by redemption of Tuition Units must be paid by the Beneficiary or the Purchaser either through the redemption of additional Tuition Units or through alternative funding methods. The percentage of tuition and required fees covered will vary depending on the college or university your Beneficiary attends and the extent to which its costs are above or below the Weighted Average cost at Texas public four-year colleges and universities.
All types of Tuition Units can be used at any Texas public college or university or converted to the Transfer Value for use at Texas private colleges and universities or out-of-state colleges or universities or eligible career schools. Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount. See the Tuition Unit Pricing Schedule and Unit Value Redemption Guide to determine the number of Tuition Units required for redemption at four-year and two-year Texas public colleges or universities in the current year.
needed will vary depending on how much a school’s costs are higher or lower than the Weighted Average of all Texas public four year colleges and universities.
For example, for the 2012-2013 school year, the University of Texas at Austin School of Nursing was about 50 percent higher than the weighted average, and the University of North Texas was about five percent higher than the weighted average. So, in 2012-2013, you would have needed 124.97 Type II Tuition Units to pay tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. for 30 hours at the University of Texas at Austin School of Nursing. In contrast, in 2012-2013, you would have needed only 105.13 Type II Tuition Units to pay tuition and schoolwide required fees for 30 hours at the University of North Texas. Lamar University in Beaumont was about three percent less than the weighted average cost of all Texas public four-year colleges and universities, so you would have needed 102.80 Type II Tuition Units for the 2012-2013 academic year.
Similarly, the actual “purchasing power” of
Type III Units:
The assigned value of a Type III Tuition Unit is 1% of the Weighted Average cost of undergraduate resident tuition and required fees for the applicable academic year consisting of 30 semester credit hours with an assumed 15 hours per semester charged by two-year institutions of higher education for residents of the taxing jurisdiction of the two-year college (two-year public junior college/public technical institute) in Texas, disregarding any portion of the tuition charged by a public junior college to a resident of this state who does not reside within the taxing jurisdiction of the junior college. The number of hours paid will vary depending on the college your Beneficiary attends and the extent to which its costs are above or below the Weighted Average cost at Texas public two-year colleges.
All types of Tuition Units can be used at any Texas public college or university or converted to the Transfer Value for use at Texas private colleges and universities or out-of-state colleges or universities or eligible career schools. Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount. See the Tuition Unit Pricing Schedule and Unit Value Redemption Guide to determine the number of Tuition Units required for redemption at four-year and two-year Texas public colleges or universities in the current year.
will vary depending on how much a Texas public college’s costs are higher or lower than the Weighted Average of all Texas public junior and community colleges. If the cost at your child’s school is higher than the Weighted Average, if your child takes more than 30 semester hours, or if your child is not a resident of the school’s taxing jurisdiction, you will have to use more Type III Tuition Units or pay the difference. But if the cost at your child’s school is lower than the Weighted Average, you will need less Type III Tuition Units.
Remember, you can use any type of Tuition Unit to pay tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at any Texas public two- or four-year college or university. The number of Tuition Units that need to be redeemed will depend on 1) the type of Tuition Units, 2) the Texas public school attended, and 3) the number of semester credit hours being paid by the Plan. At Texas public junior and community colleges, it will also depend on in-district or out-of-district status. If you have fewer Tuition Units than needed to cover the tuition and required fees or if you prefer to redeem fewer units than are required, the Beneficiary is responsible for paying the difference due to the school by the deadline so that classes are not cancelled for non-payment.
Check the Unit Value Redemption Guide to see where your child’s school falls on the Unit Value tables. You can find the guide at the back of the Pricing Schedule and Redemption Guide.
All Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. can be used at most four- or two-year public colleges and universities in Texas, excluding medical and dental institutions. While it is impossible to predict the exact number and type of units you will need for a particular school in the future, check out the Pricing Schedule and Redemption Guide for the number of units currently required at Texas public schools. At the back of the Pricing Schedule and Redemption Guide you will find information on the number of each type of Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. necessary to cover one academic year’s tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at Texas public two-year and four-year colleges and universities if the units were redeemed in the current academic year. This is subject to change in the year that you actually redeem your Tuition Units. For example, a college whose costs are at the Weighted Average in the year Tuition Units are purchased might not be at the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. in the year Tuition Units are redeemed.
“Three-Year Holding Period” means the period of time that must transpire before a Beneficiary or Purchaser may redeem a Tuition Unit.
You have up to 10 years after your child’s projected date of high school graduation to use all Tuition Units; otherwise the account will be canceled. Any years your child spends in active U.S. military service are added to the 10-year limit to extend the time period in which benefits can be used.
The following chart shows the historical sales prices/redemption values for the various units offered through the Texas Tuition Promise Fund:
| SALES PRICES | ||||||
|---|---|---|---|---|---|---|
| SALES PERIOD | UNIT TYPE | |||||
| I | II | III | ||||
| 2008-2009 | $98.50 | $67.65 | $16.99 | |||
| 2009-2010 | $103.40 | $71.75 | $17.78 | |||
| 2020-2011 | $107.44 | $75.47 | $18.51 | |||
| 2011-2012 | $111.68 | $79.70 | $20.54 | |||
| 2012-2013 | $115.92 | $82.92 | $21.39 | |||
| 2013-2014 | $118.06 | $85.10 | $21.71 | |||
| 2014-2015 | $118.06 | $89.42 | $22.23 | |||
| 2015-2016 | $132.54 | $91.43 | $23.35 | |||
| 2016-2017 | $135.22 | $94.66 | $23.89 | |||
| 2017-2018 | $137.92 | $97.90 | $25.05 | |||
| 2018-2019 | $142.74 | $101.95 | $25.64 | |||
| 2019-2020 | $147.80 | $105.54 | $26.84 | |||
| 2020-2021 | $151.64 | $108.35 | $28.81 | |||
| 2021-2022 | $164.12 | $112.59 | $29.15 | |||
| 2022-2023 | $164.12 | $113.83 | $29.48 | |||
| 2023-2024 | $164.12 | $114.60 | $30.71 | |||
You can use the Tuition Units to help pay for tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at all Texas public colleges and universities, excluding medical and dental institutions. If your child attends a medical or dental institution, private or out-of-state college or university, career school or registered apprenticeship program where tuition and schoolwide required fees are not locked in, you can apply the Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of your units toward the cost of tuition and schoolwide required fees. The Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of the units being redeemed will be the lesser of: 1) the costs the Tuition Units would pay at a public in-state college or university, or 2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
Many Texas public colleges and universities offer undergraduate courses to enrolled students through online or distance learning. In most cases, Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. can be redeemed to pay tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. for these courses the same way Tuition Units are redeemed to pay for on-campus courses.
Texas junior colleges offer a variety of certificate programs. Generally, Tuition Units can be redeemed to pay for undergraduate for-credit courses, including courses offered in certificate programs.
Texas junior colleges offer certain continuing education courses that are not for-credit courses. Generally, Tuition Units cannot be redeemed to pay directly for these courses. The Purchaser can rollover the Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of the Tuition Units to a 529 Savings Plan Account, such as the Texas College Savings Plan®. Then the Purchaser can authorize distributions from the 529 Savings Plan Account to pay for these types of junior college courses. Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
No. Your Texas Tuition Promise Fund cannot be used for graduate school. However, you can rollover the Transfer Value (Transfer Outside of Plan) to a 529 college savings plan, such as the Texas College Savings Plan®, and the proceeds can be used to pay for expenses not covered by the Plan. These expenses include course-specific fees, books, room and board, or graduate school tuition. The Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
You should contact customer service at 1-800-445-4723, Option #5, or access your account online for information about your account including the Transfer Value.
The Purchaser can transfer the Transfer Value (Transfer Outside of Plan) of your Tuition Units to a qualified 529 college savings plan, such as the Texas College Savings Plan®, and the proceeds can be used to pay for tuition in connection with enrollment or attendance at an elementary or secondary public, private or religious school as determined under applicable state law (up to $10,000 per year per Beneficiary). The Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a Texas public college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount. Please note that the $10,000 limitation applies on a per-student basis, rather than a per-account basis, regardless of whether the funds are distributed from multiple 529 accounts. You can check online at texastuitionpromisefund.com or contact customer service at 800-445-4723, Option #5, for information about the Transfer Value of your account.
Recent tax reform legislation changes allowing for payment of K-12 tuition were on a federal level, and the tax consequences of using 529 plans for elementary or secondary education tuition expenses will vary depending on state law and may include recapture of tax deductions received from the original state as well as penalties. The account owner should consult with a tax or legal advisor before using the plan for K-12 tuition.
The Purchaser can transfer the Transfer Value (Transfer Outside of Plan) of your Tuition Units to a qualified 529 college savings plan, such as the Texas College Savings Plan®, and the proceeds can be used to pay up to $10,000 in amounts paid as principal or interest on qualified student loans of the Beneficiary and/or their sibling. A qualified student loan means a qualified education loan under Section 221(d) of the Internal Revenue Code. The Transfer Value is limited to the lesser of (1) the costs the Tuition Unit would cover at a Texas public college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount. Please note that the $10,000 limitation applies on a per-student basis, rather than a per-account basis, with a lifetime limit of up to $10,000 per Beneficiary regardless of whether the funds are distributed from multiple 529 accounts. You can check online at texastuitionpromisefund.com or contact customer service at 800-445-4723, Option #5, for information about the Transfer Value of your account.
If you have accumulated more Tuition Units than you need to cover tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. you can:
The number of voluntary refunds for a Purchaser is limited to two in a 12-month period and must be in increments of 25 Tuition Units or 100% of the Purchaser’s Tuition Units, whichever is less.
In order to redeem Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. your account must have met the following requirements:
Each April, purchasers with beneficiaries who will reach their projected high school graduation dates in the following May or June will receive notice from the Plan advising that they can manage the use of their Tuition Units online via the Account Access page. The beneficiary’s account status will show how many units have been purchased overall, as well as how many units have satisfied the three-year holding period and are available to be redeemed.
The account Purchaser: The person who establishes the Contract for a specified Beneficiary. There can only be one Purchaser for each Contract. The Purchaser is responsible for making payments in a timely manner and is the only person who may direct or receive refunds, or may direct rollovers, Contract changes, and changes in the designated Beneficiary except that the Contract may be cancelled or modified by the Plan. Friends and family who contribute to another person’s account are not the Purchaser and may not prevent, direct or receive refunds, and may not direct rollovers, contract changes, or changes in the designated Beneficiary. MUST authorize payment to an in-state Texas public college, university or community college by completing the Benefit Payment Authorization Form. This process must be completed each semester even if your child is enrolled in the same school. The Purchaser can authorize redemption of available Tuition Units by any of the following methods:
The number of Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. you will need to pay your child’s tuition and schoolwide required fees costs will depend on the cost of the particular school attended and the type of Tuition Units you have. For the 2023-2024 academic year, those costs and schoolwide required fees, as well as the current redemption value for each type of tuition unit, under “Forms & Materials”, in the document titled Pricing Schedule and Redemption Guide. The Guide also includes a schedule showing the tuition and required fee costs of each Texas public school, and how many units of each type are required to cover the tuition and fees at that school for one academic year consisting of 30 semester credit hours. A sample of the information included in the schedule, based on 2023-2024 numbers, is shown here:
| 4-Year or 2-Year University/College | Tuition and Schoolwide Required Fees – 2023-2024 Academic Year | # of Units Required* for 30 semester hour academic year. | ||
|---|---|---|---|---|
| Type I | Type II | Type III | ||
| University of Texas at Dallas-Fixed Tuition | $16,412.00 | 100.00 | 143.21 | 534.42 |
| University of Texas at Austin-McCombs School of Business-Fixed Tuition | $15,756.00 | 96.00 | 137.49 | 513.06 |
| University of Texas at Arlington-College of Liberal Arts-Visual and Performing Arts-Fixed Tuition | $14,202.00 | 86.53 | 123.93 | 462.46 |
| Texas A&M University-College Station-College of Biological and Agricultural Engineering-Fixed Tuition | $14,409.70 | 87.80 | 125.74 | 469.22 |
| Texas Tech University-Rawl's College of Business Administration-Traditional | $13,657.00 | 83.21 | 119.17 | 444.71 |
| Texas State University-Fixed Tuition | $12,777.40 | 77.85 | 111.50 | 416.07 |
| Tarleton State University-School of Engineering-Stephenville Campus-Fixed Tuition | $12,231.00 | 74.52 | 106.73 | 398.27 |
| Lamar University-Fixed Tuition Plan | $11,340.30 | 69.10 | 98.96 | 369.27 |
| Blinn College-Brenham Campus (In District) | $4,530.00 | 27.60 | 39.53 | 147.51 |
| Trinity Valley Community College (In District) | $2,640.00 | 16.09 | 23.04 | 85.97 |
| *Number of units required for 30 semester hour academic year | ||||
Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. are only those fees paid by all students at a college or university as a condition of enrollment, regardless of year, major, or course of study. Please note: depending on the school your child attends, you may be required to pay fees that are not schoolwide required fees and are not covered by the Plan.
Examples of fees that are not covered by Tuition Units include course-related fees, such as lab fees; fees related to your child’s major or year of study, such as freshman orientation or freshman advisor fees; optional fees; graduate fees; or deposits. Although your child’s school might use the label “required fee,” a fee must meet the Plan’s definition of Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. to be covered by the Plan. Tuition Units may not be used to pay for other college expenses, such as dormitory, living expenses or books.
You should notify your child’s college or university that you will use the Texas Tuition Promise Fund®. Also, once you have completed the Payment Authorization process, the college will receive an electronic notification that your beneficiary is using the Plan. Most Texas public colleges and universities will pre-credit your account for some portion of the tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. due if you are using the Texas Tuition Promise Fund. However, you should coordinate with the school to determine the amount of the pre-credit, if any, and you should pay any amounts that will not be pre-credited by the school prior to the payment deadline in order to avoid late fees or cancellation of classes. The school will bill the Plan after the add/drop period. The Plan will issue payment directly to the school. The Plan will pay the school within 30 days of receiving a billing from the school.
There will be no adjustments to your Texas Tuition Promise Fund account for hours dropped after the Plan has paid the school. Any refund under those circumstances is between you and the school, and no Tuition Units will be restored to your account.
If the Texas Match the Promise Foundation awarded the student a matching scholarship or tuition grant in grades five through nine, the owner of the Texas Tuition Promise Fund account linked to the award must submit an Approval Request to Use Scholarship Tuition Units to request approval to use those units. The Foundation will work with the Texas Tuition Promise Fund program to disburse Scholarship Tuition Units as needed, up to the maximum number available, directly to the school’s billing office upon request.
Scholarship Tuition Units can be applied toward the cost of undergraduate tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at certain Texas public colleges and universities ONLY. Scholarship Tuition Units cannot be used at medical or dental institutions, private or out-of-state colleges or universities, career schools or registered apprenticeship programs.
To the extent possible, available Tuition Units in the linked Texas Tuition Promise Fund account should be used before Scholarship Tuition Units.
Please note that scholarship account information is not available online. The owner of the linked account can obtain scholarship account information by calling the Texas Tuition Promise Fund program at 800-445-4723, option 5. Be sure to mention that the Foundation awarded the student a matching scholarship or tuition grant.
The owner of the linked account will also receive an annual statement for the student’s scholarship account from the Texas Tuition Promise Fund program.
The Purchaser can:
Refund Value means an amount equal to the total purchase price of unused Tuition Units to be refunded from the Contract, plus or minus adjusted annual net earnings or losses on contributions made to purchase the Tuition Units that are being refunded. Adjusted annual net earnings on contributions are computed at an earnings rate set by the Board that is up to 2% less than the actual investment return for the Plan for each of the years the Contract is in effect, provided that in no event shall the annual net earnings on the contributions ever exceed 5% annually. Earnings may be paid with a refund only if the Board determines that such payment will not adversely affect the actuarial soundness of the Plan. Any outstanding fees imposed by the Plan would be subtracted from the total refunded amount. Refund Value does not include any state-provided or procured matching contributions or any earnings on state-provided or procured matching contributions.
Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
Call Customer Service at 800-445-4723, Option #5, and request the current estimated Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of your Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. . Net investment earnings or losses will continue to accrue until the business day the plan manager processes your transfer request.
When the Purchaser is ready to request payment of the Transfer Value to a medical or dental institution, private or out-of-state college or university, career school or registered apprenticeship program, the Purchaser can do the following:
Please note: Net investment earnings or losses continue to accrue until the business day the plan manager processes your transfer request.
Yes. Dual enrollment (dual credit) is the term used for college credit courses taken while attending high school. Your Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. can be used to pay undergraduate tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. for dual credit courses at Texas public two- and four-year colleges and universities.
In order to redeem Tuition Units while your child is attending high school, your account must have met the following requirements:
If your beneficiary takes dual credit courses at a Texas public college or university, follow the steps in item #4 above to authorize redemption of Tuition Units. If your child takes dual credit courses at an eligible career school, Texas private college or university, or out-of-state college or university, follow the steps in item #10 above to apply the Transfer Value of your Tuition Units toward the cost of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. Transfer Value (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
Payment must be made by the Plan directly to your beneficiary’s school.
You can access your account information, including the Transfer Value of your account, online by following the instructions in item #3, above or you can contact customer service at 1-800-445-4723, Option #5, for information about your account, including the Transfer Value.
Whether your account will affect your child’s eligibility for federal financial aid depends on who the Purchaser is and your child’s relation to the Purchaser. Also, laws related to federal student aid change frequently. You should check the latest information on the Department of Education’s website at www.fafsa.com, particularly the Federal Student Aid Handbook, to see how you should report your account on your child’s Free Application for Federal Student Aid (FAFSA). For Texas state-funded financial aid, Texas law provides that the value of your Tuition Units may not be considered assets, income, or resources in determining eligibility for Texas state-funded student financial aid.
For school-based financial aid, the effect of being a Purchaser or Beneficiary of an Account varies from institution to institution.
Yes, the IRS allows a tax-free rollover from one 529 plan to another 529 plan for the same beneficiary or a
member of the family:
As defined by IRS Publication 970, the Beneficiary's family includes the Beneficiary's spouse and any of the following other relatives of the Beneficiary:
1. Son, daughter, stepchild, foster child, adopted child, or a descendent of any of them.
2. Brother, sister, stepbrother, or stepsister.
3. Father or mother or ancestor of either.
4. Stepfather or stepmother.
5. Son or daughter of a brother or sister.
6. Brother or sister of father or mother.
7. Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
8. The spouse of any individual listed above.
9. First cousin.
The new Beneficiary must be a Texas resident or the child of a parent who is both the Purchaser and a Texas Resident.
of the beneficiary if these requirements are satisfied:
For further details on rollovers from one 529 plan to another 529 plan, see the Plan Description and Master Agreement. If you are planning on rolling over funds from another 529 plan to the Texas Tuition Promise Fund, you must first establish an account with the Texas Tuition Promise Fund and then complete our Rollover Form.
Yes, the IRS allows a tax-free rollover from a 529 account made after December 22, 2017, and before January 1, 2026, to an ABLE account of the same beneficiary or a
member of the family:
As defined by IRS Publication 970, the Beneficiary's family includes the Beneficiary's spouse and any of the following other relatives of the Beneficiary:
1. Son, daughter, stepchild, foster child, adopted child, or a descendent of any of them.
2. Brother, sister, stepbrother, or stepsister.
3. Father or mother or ancestor of either.
4. Stepfather or stepmother.
5. Son or daughter of a brother or sister.
6. Brother or sister of father or mother.
7. Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
8. The spouse of any individual listed above.
9. First cousin.
The new Beneficiary must be a Texas resident or the child of a parent who is both the Purchaser and a Texas Resident.
of the beneficiary if these requirements are satisfied:
For a rollover to the Texas ABLE® Program that includes a change of beneficiary, the new beneficiary must meet the eligibility requirements of the Texas ABLE Program.
For further details on rollovers from a 529 plan to a Texas ABLE account, see the Texas ABLE Program Disclosure Statement and Participation Agreement. If you are planning on rolling over your Texas Tuition Promise Fund contract to the Texas ABLE Program, complete the Texas ABLE Rollover Form.
The information presented in the Roth Individual Retirement Account (IRA) Rollover FAQs is based on a good faith interpretation of federal legislation enacted in December 2022. The U.S. Treasury Department and Internal Revenue Service (IRS) may issue interpretative guidance in the future that may affect the tax treatment of such rollovers.
PLEASE CONSULT WITH YOUR TAX ADVISOR REGARDING THE APPLICABILITY TO YOUR PERSONAL SITUATION. CLICK HERE TO READ SECTION 126 OF THE SECURE 2.0 ACT.
Starting January 1, 2024, a 529 plan account owner may roll over amounts from their 529 account to a Roth IRA subject to certain conditions:
(1) the 529 plan account must have been maintained for the 15-year period ending on the date of the rollover;
(2) the rollover must be made in a direct transfer from the 529 plan account to an established Roth IRA maintained for the benefit of the same beneficiary as the 529 plan account;
(3) the rollover is subject to the applicable annual IRA contribution limits (together with all other IRA contributions made during the year for the same beneficiary); and
(4) the rollover amount may not exceed the beneficiary’s compensation for the year, the aggregate amount contributed (including associated earnings or losses) to the 529 plan account before the 5-year period ending on the date of the rollover, or $35,000 over the lifetime of the beneficiary.
Roth IRA income limitations are waived for rollovers from a 529 plan.
An account owner may request a rollover from their 529 plan account to a Roth IRA beginning January 1, 2024.
An account owner may request a rollover from their account to a Roth IRA by uploading the Roth IRA Rollover Form to the customer portal at access.texastuitionpromisefund.com or by mailing to: Texas Tuition Promise Fund, P.O. Box 44305, Jacksonville, FL 32231.
No, Roth IRA rollover requests cannot be entered directly through the online account portal, and can only be submitted via mailed paper form, or by uploading the completed form to the customer portal as described in the previous question.
No. A rollover from your account to a Roth IRA must be trustee-to-trustee, meaning that it must be transferred directly from the TTPF Plan to the Roth IRA trustee/custodian.
A Roth IRA account for the beneficiary of the TTPF account must be established before an account owner requests a rollover from the 529 account. If the Roth IRA trustee/custodian requires a Letter of Acceptance, the owner of the Roth IRA account- will need to direct them to send that letter to TTPF before the plan can roll over the funds. The request can be sent by fax to: 1 (800) 519-4652 or mailed to: Texas Tuition Promise Fund, P.O. Box 44305, Jacksonville, FL 32231.
Account owners can contact Customer Service from 8am to 6pm CT Monday through Friday, except for holidays, by calling 1 (800) 445-4723, option #5.
The IRS has not provided guidance on whether a rollover from one 529 plan account to another 529 plan account resets the 15-year requirement. It is unclear if or when the IRS will provide such guidance.
The IRS has not provided guidance on whether a change of beneficiary resets the 15-year requirement. It is unclear if or when the IRS will provide such guidance.
The IRS has not provided guidance on whether a change of account owner resets the 15-year requirement. It is unclear if or when the IRS will provide such guidance.
The 12-month rule only applies to rollovers from one 529 plan account to another 529 plan account.
The IRS has not provided guidance on how internal transfers (transfer from one account to another account in the same plan) impact the ability to roll over to a Roth IRA. It is unclear if or when the IRS will provide such guidance.
To the extent that this references a beneficiary change, please see “If I changed the beneficiary on my TTPF account, does that reset my 15-year clock?”.
There is no age requirement for the beneficiary, but the Secure 2.0 ACT requires that the owner of the Roth IRA account be the same as the beneficiary of the 529 account. Please note that the rollover amount may not exceed the beneficiary’s compensation for the year.
The IRS has not provided guidance on how it would handle this situation. If the IRS were to treat such an account re-opening as not resetting the 15-year clock, any rollovers would still have to comply with the five year requirement described in the question “Can I roll over funds from my 529 plan account to a Roth IRA?”.
Texas does not have a state income tax, but if you are a non-Texas resident and you previously claimed a credit or deduction on your state’s income tax for contributions to your TTPF account, there might be a tax consequence for requesting a Roth IRA rollover from your account. Please consult with your tax advisor regarding the applicability to your personal situation.
If your beneficiary has reached the age of majority, they must sign the form authorizing the rollover and acknowledging that they will be responsible for any applicable tax consequences or penalties. The IRS and the beneficiary will receive an IRS Form 1099-Q.
An eligible rollover from a 529 plan account to a Roth IRA for the same beneficiary is free of federal taxes and penalties. However, the U.S. Treasury Department and IRS may issue interpretative guidance in the future that may affect the tax treatment of such rollovers. Please consult with your tax advisor regarding the application of the 529-to-Roth rollover requirements to your personal situation.
The rollover amount from all of the beneficiary’s 529 plan accounts into a Roth IRA may not exceed $35,000 in total.
A direct roll over of funds from a TTPF account to a Roth IRA is based on the Transfer Value.
The Transfer Value is limited to the lesser of:
*Transfer Value is not equal to FAFSA value.
The number of tuition units deducted from your account will be based on the rollover amount that you request, divided by the value of the tuition units on your contract.
According to recent updates from the IRS, a rollover from a 529 account made after December 31 of the previous year, that is put into the beneficiary’s Roth IRA by April 15 of the current year, can be designated as a Roth IRA contribution for the previous year. The Roth IRA account owner should indicate the applicable tax year at the time the contribution is made to the Roth IRA account. Consult a tax advisor or financial professional for additional guidance.
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