Enrollment Year Investment Option
Consider this if: You’re looking for an all-in-one solution to manage your savings over the long term without extra work on your part.
The Enrollment Year Investment Option makes things simple for you. You simply pick the portfolio that matches the year your child will enter college and the asset allocation adjusts over the years to become more conservative as the enrollment year approaches. It's a great way to minimize risk as you get closer and closer to using your account to pay for qualified education expenses.
Enrollment Year Investment Option
| Investment Option Name | When will the savings be needed? |
|---|---|
| 2042/2043 Enrollment Portfolio | 18+ Years |
| 2040/2041 Enrollment Portfolio | 16-17 Years |
| 2038/2039 Enrollment Portfolio | 14-15 Years |
| 2036/2037 Enrollment Portfolio | 12-13 Years |
| 2034/2035 Enrollment Portfolio | 10-11 Years |
| 2032/2033 Enrollment Portfolio | 8-9 Years |
| 2030/2031 Enrollment Portfolio | 6-7 Years |
| 2028/2029 Enrollment Portfolio | 4-5 Years |
| 2026/2027 Enrollment Portfolio | 2-3 Years |
| Enrolled Portfolio | Now |
The portfolios are subject to the risks of the underlying funds, including the loss of principal.
Enrollment Year Investment Option Glidepath
How does it work?
For each Enrollment Year Portfolio, the allocation or mix of equities, fixed income and capital preservation adjusts automatically to become more conservative as the enrollment year approaches.
Ideal for all education savings goals
Families can also take advantage of the versatility of the Enrollment Year Investment Option to save for all types of qualified education expenses, including college/university, community college, trade schools, professional and graduate schools, apprenticeship expenses and K-12 tuition.*
Footnotes
- *Withdrawals for tuition expenses at a public, private or religious elementary, middle or high school, registered apprenticeship programs and student loan repayment can be withdrawn free from federal income tax. We encourage account owners to consult a qualified tax professional about how these withdrawals relate to their personal situation.
K-12 withdrawals are limited to $10,000 per year for K-12 tuition. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan.↩
Understand your risk tolerance level
What level of risk are you comfortable with? You can find out by answering our Risk Tolerance questions. If you are a conservative investor, you may wish to choose an Enrollment Year Portfolio with an earlier target use date regardless of the year your future student begins at a four-year college/university, community college or trade school. More aggressive investors can select a later date. Investors aligning with their risk tolerance or seeking particular investment objectives can view asset allocation across enrollment year dates above to help guide their decision.
