The Connecticut Higher Education Trust (CHET), the state’s direct-sold 529 college savings plan, has made it easier to contribute to college savings accounts. CHET is among the first 529 college savings plans in the country to launch e-gifting, an option that allows account holders to invite friends and family to donate to a CHET account with a few simple clicks online.
“When you think of all the occasions when parents are asked for gift ideas — birthdays, holidays, graduations — e-gifting provides a convenient way for family and friends to give a gift that truly lasts. Toys inevitably fall out of favor and children outgrow clothes all too quickly, yet a college education is a gift that helps a child’s dreams come true,” said state Treasurer Denise L. Nappier, trustee for CHET.
The CHET e-gifting option can be completed securely online without account or Social Security numbers. Gifts of $25 or more may be made, and if a gift giver is a Connecticut taxpayer, he or she may be eligible for a Connecticut income tax deduction.
The process is initiated by an account owner, who e-mails a link to family and friends. A gift giver can then click on the link, enter a gift amount and banking information, and the payment is made into a CHET account.
The account owner receives notification of the deposit, and the gift giver has the option of downloading a “gift of education” certificate that may be wrapped, framed or inserted in a card and presented as a gift.
The CHET direct-sold 529 college savings plan was established in 1997 and as of March 30 has grown to more than $1.9 billion in assets and more than 86,300 individual accounts.
For more information about e-gifting, visit aboutchet.com/egift.