Enrollment Year Investment Options
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 option 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.
The following table lists the available Enrollment Year Investment Options effective June 9, 2023, as well as the approximate age of a beneficiary for whom you may want to select such Investment Option. Effective June 9, the 2022/2023 Enrollment Year Investment Option was merged into the In School Option and the 2040/2041 Enrollment Year Investment Option was launched. It is anticipated that a new Enrollment Year Investment Option will be added approximately every two years.
Enrollment Year Investment Options
|Investment Option Name||When will the savings be needed?|
|2040/2041 Enrollment Option||17+ Years|
|2038/2039 Enrollment Option||15-16 Years|
|2036/2037 Enrollment Option||13-14 Years|
|2034/2035 Enrollment Option||11-12 Years|
|2032/2033 Enrollment Option||9-10 Years|
|2030/2031 Enrollment Option||7-8 Years|
|2028/2029 Enrollment Option||5-6 Years|
|2026/2027 Enrollment Option||3-4 Years|
|2024/2025 Enrollment Option||1-2 Years|
|In School Option||Now|
The investment options 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 Investment Option, the allocation or mix of equities, bonds 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.*
- *Withdrawals for tuition expenses at a public, private or religious elementary, middle or high school, registered apprenticeship programs and student loans can be withdrawn free from federal taxes. For Michigan taxpayers, these withdrawals are subject to recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances.
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 is 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 earlier enrollment year option regardless of the year your future student begins 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.