On May 18, 2021, Public Chapter 469 was signed into law, effectively terminating all remaining contracts in the program by December 31, 2021.
An automatic program-initiated refund was issued on November 19, 2021 to the named Refund Recipient for any BEST contracts for which there was no activity taken prior to November 1, 2021. Refunds were paid out at the unit rate effective for the last academic year your beneficiary was certified.
Withdrawals, including program-initiated refunds, will be considered non-qualified withdrawals and will be subject to federal tax consequences unless (1) you or the beneficiary have retained proof of qualified higher education expenses that are equal to or greater than the amount of the withdrawal or (2) you rollover the distribution to a qualified 529 program within 60 days of the date of the distribution. 1099-Q forms will be mailed by January 31, 2022. Please consult your tax advisor regarding your own circumstances.
Automatic program-initiated refunds were issued on November 19, 2021. Within 60 days of the issuance of the automatic refund, you can indirectly roll the funds received as part of the automatic program-initiated refund process to another 529 plan, such as the TNStars College Savings 529 Program. Rolling over to another 529 plan allows you to continue to save for your beneficiary’s future and will not cause a taxable event. A program of the Tennessee Department of Treasury, TNStars offers high quality investment options at a low cost to help families save tax-free for future college expenses. To learn more about TNStars, investment objectives, risk, costs and to read the official statement visit TNStars.com or contact (855) 386-7827 or TN.Stars@tn.gov.
For most indirect rollovers, a breakdown of contributions and earnings is required by the receiving 529 plan. To request this information, please contact our office at Best.Office@tn.gov or call us at (615) 532-8056 or toll-free at (888) 486-BEST (2378).
Rollover to TNStars
Criminal Injuries Compensation
Toll-Free: (888) 486-BEST (2378)
P.O. Box 198786Nashville, TN 37219