On December 22, 2017, the president signed new tax legislation into law. We're working on updating our website to reflect the new U.S. tax laws. In the meantime, the website may not address the changes. The legislation includes several new provisions related specifically to 529 plan accounts. We'll provide more information as additional details about the effects of the tax bill become clear. We encourage you to consult a qualified tax advisor about your personal situation.
GIFT Plan Savings Portfolio
The GIFT Plan Savings Portfolio is a lower-risk, FDIC-insured option for college savers seeking to minimize their exposure to market volatility. This option:
- seeks to provide income consistent with the preservation of principal
- invests 100% of its assets in the Sallie Mae High-Yield Savings Account (HYSA).*
Salle Mae Bank serves as GIFT Plan Savings Portfolio Manager. Sallie Mae Bank is a state-chartered Utah industrial bank.
*The HYSA is held in an omnibus savings account insured by the FDIC, which is held in trust by Arkansas Section 529 Plan Review Committee (the "Committee") at Sallie Mae Bank. Contributions to and earnings on the investments in the Savings Portfolio are insured by the FDIC on a pass-through basis to each account owner up to $250,000, the maximum amount set by federal law. The amount of FDIC insurance provided to an account owner is based on the total of (a) the value of an account owner's investment in the GIFT Plan Savings Portfolio; and (b) the value of all other accounts held by the account owner at Sallie Mae Bank, as determined by Sallie Mae Bank and FDIC regulations.