The State of Connecticut recently passed legislation creating the CHET Baby Scholars program to encourage college savings for newborns and newly-adopted children.
The major points:
- The CHET Baby Scholars program provides up to $250 toward a newborn’s future college costs. Every baby born in Connecticut, who is less than a year old, and every adopted child, not later than the first anniversary of the adoption, is eligible for a CHET Baby Scholars grant in the amount of $100.
- If an additional $150 is saved in the account by the time the child is four (or in the case of an adoption, by the fourth anniversary of the adoption), the account may be eligible for a second grant of $150.
- The first step is to open a CHET 529 college savings account for the child before the child’s first birthday or first anniversary of adoption. Click here for instructions on how to sign up.
- Next, you need to “opt-in” to CHET Baby Scholars.
- Once you open your account and opt-in to CHET Baby Scholars, CHET will automatically deposit the initial $100 into your account. The contribution will appear in your account after the end of the quarter in which you signed up.
- As long as you’ve opted in to this program, a review will occur on a quarterly basis after the initial $100 CHET Baby Scholars funding is deposited and, if eligible, the matching amount will be deposited.
- Make sure the account owners, if there are multiple owners (grandparents and parents, for example), decide on ownership before it comes time to withdraw the funds to pay for college so that the funds can be easily coordinated.
CHET Baby Scholars is a program of CHET, the State of Connecticut’s 529, tax advantaged college savings plan.