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Capital Preservation Option
 


Do you value safety over risk?
 

The FDIC-insured Capital Preservation Option1 has an interest rate that changes periodically and seeks income consistent with the preservation of principal. The current APY rate of this portfolio can be found on the Price and Performance Page, located here.

Note: The Guaranteed Option2 was closed to new contributions after February 22, 2019.

1The Capital Preservation Option invests all of its assets in the NexBank High-Yield Savings Account, (“HYSA”). The HYSA is held in an omnibus savings account insured by the Federal Deposit Insurance Corporation (“FDIC”), which is held in trust by the Kentucky Higher Education Assistance Authority at NexBank. Contributions to and earnings on the investments in the Capital Preservation Option 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 Capital Preservation Option; and (b) the value of all other accounts held by the account owner at NexBank, as determined by NexBank and FDIC regulations. Except for the Capital Preservation Option, investments in KY Saves 529 are not insured by the FDIC.
2Any contributions to the Guaranteed Option received after conversion were redirected to the Capital Preservation Option. TIAA-CREF Life Insurance Company may, in the future, change the rate of return of the Guaranteed Option. The Guaranteed Option was closed to new contributions at conversion on February 22, 2019.

In February 2023, or earlier depending on certain conditions, any remaining assets in the Guaranteed Option will automatically move to the Capital Preservation Option or a similar investment available at that time. You may also exchange or withdraw money from the Guaranteed Option at any time. Remember, under federal law, you’re allowed to make two exchanges per calendar year.

The current effective annual interest rate for the Guaranteed Option credited to KY Saves 529 through June 30, 2021, is 1.45%, subject to the claims paying ability of TIAA-CREF Life Insurance Company.

TIAA-CREF Life Insurance Company will continue to serve as the Guaranteed Option investment manager after the conversion for funds deposited before February 22, 2019.
 

For more information about the Kentucky Educational Savings Plan Trust (KY Saves 529), call 877-598-7878 or visit www.kysaves.com to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other important information. Read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also may wish to contact directly your home state’s 529 college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

KY Saves 529 is administered by the Kentucky Higher Education Assistance Authority. Ascensus College Savings Recordkeeping Services, LLC, is the Program Manager. The Program Manager and its affiliates have overall responsibility for the program’s day-to-day operations, including investment advisory services, recordkeeping, and administrative services.

Investment returns will vary depending upon the performance of the Investment Options you choose. Except to the extent of FDIC insurance available for the Capital Preservation Option, depending on market conditions, you could lose all or a portion of your money by investing in KY Saves 529. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.

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