Kentucky Education Savings Plan Trust

Glossary

A-E | F-R | S-Z



Account Application
The account application is the application to be completed and submitted to the Kentucky Higher Education Investment Plan (KESPT) along with payment, to participate in KESPT. It incorporates by reference the KESPT Participation Agreement.


Accredited School
An accredited school is a school that is eligible to participate in certain federal student aid programs. This might be a college or graduate school, or a vocational or trade school. Most major colleges and universities are accredited. Contact your school to determine if it is accredited.


Beneficiary
The Beneficiary is the person named by the Account Owner in the Account Application (or in a Change of Beneficiary form).


Contingent Owner
The Contingent Owner is the person designated by the Account Owner on the Account Application to succeed to ownership of the account upon the Account Owner's death.


Coverdell Education Savings Account (CESA or ESA)
A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the designated beneficiary of the account.


Custodial Account
An account that is created for the benefit of a minor, with an adult (agent, bank, trust company, or other organization) as the custodian in accordance with applicable state law. With Custodial Accounts, control of the account transfers to the beneficiary at the age of majority (18 or 21 depending on state).


Custodial Account Application
This is an account application used by a Custodian. Download the Custodial Account (PDF, 71KB) application.


Custodian
An agent, bank, trust company, or other organization which holds and safeguards an individual's account assets for him.


Education IRA
See Coverdell Education Savings Account (CESA or ESA).


EGTRRA
EGTRRA is the Economic Growth and Tax Relief Reconciliation Act of 2001, as amended, and the Treasury regulations, pronouncements and publications thereunder.


Eligible Educational Institution
Generally are accredited, post secondary educational institutions offering credit towards a bachelor's degree, an associate's degree, a graduate level or professional degree, or another recognized post-secondary credential.


Entity Account Application
This is the account application used by trusts or estates, business entities, Internal Revenue Code Section 501(c)(3) organizations, or state/local governments. Download the Entity Account (PDF, 82KB) application.


Glossary terms continue:

F-R | S-Z

PDF files require the free Adobe Acrobat Reader. Get it here.
 

WE'RE HERE TO HELP

Have a question you don't see listed? Need clarification?

Call us toll-free at
1-877-KY TRUST
(1-877-598-7878)

We're available 8:00 am - 8:00 pm Eastern Time, Monday - Friday.


Don't forget to set up the Automatic Contribution Plan (PDF, 157KB) or use Payroll Deduction (PDF, 45KB) for your contributions.

PDF files require the free Adobe Acrobat Reader. Get it here.

Access our glossary for the meanings of terms used throughout this site.

Tell a Friend
Let a friend know about the Kentucky Education Savings Plan Trust.
CalculateCalculate Your
Savings Need
CompareCompare College
Savings Options
Questions?Questions?
Call 1-877-598-7878

The tax information contained on the Kentucky Education Savings Plan Trust (the Plan) Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The Plan is administered by the Kentucky Higher Education Assistance Authority. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager. TFI's affiliate, TIAA-CREF Individual & Institutional Services, LLC, is the distributor.

The investment approaches described are not recommendations and do not take into consideration personal goals or preferences. After evaluating information you consider important in making an investment choice, the ultimate decision is up to you. It is a good idea to revisit your investment strategy periodically as your goals, personal financial situation, and market conditions change.

Consider the investment objectives, risks, charges and expenses before investing in the Plan. Please call toll-free 1-877-KY TRUST (1-877-598-7878) for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Kentucky, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general market conditions.

The Plan Web site is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet.

The Plan Web site contains links to other Web sites. Neither the Plan Trust nor TFI and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

C37670
© 2007 TIAA-CREF Tuition Financing Inc.