The new plan, called the USAA College Savings Plan, will allow withdrawals for qualified higher-education expenses free of federal income taxes. Investment options will feature portfolios consisting of mutual funds from USAA and Strong.
Participants can use their accounts to finance tuition, books, room and board, and other expenses at any accredited university, college, graduate school, or professional or vocational institution nationwide.
Other features of the plan include:
- growth, moderate, balanced, conservative, or in-college portfolios,
- an age-based investment option that automatically becomes more conservative as the beneficiary nears college,
- no age restriction on the account’s beneficiary, and
- a maximum current balance of $246,000 per beneficiary and, no income restrictions on participation