Glossary
Section 529
Section 529 of the Internal Revenue Service Code, the section that specifies the requirements for qualified tuition college savings programs (529 plans).
TIAA-CREF Tuition Financing, Inc.
TIAA-CREF Tuition Financing, Inc., (TFI) is an affiliate of TIAA-CREF, a financial services organization with more than 90 years of investment experience.
Title IV Participation
Institution has a Program Participation Agreement with the US Department of Education (the Department) for eligible students to receive Pell Grants and, depending upon the agreement, other federal aid. For an institution to participate in Title IV financial aid programs, it must offer a program of at least 300 clock hours in length, have accreditation recognized by the US Department of Education, have been in business for at least 2 years, and have signed a participation agreement with the Department.
Traditional (Classic) IRA
See IRA.
UGMA
Uniform Gift to Minors Act. Laws adopted by most states allowing an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. Thus, minors can have securities bought and money invested in their names, but the custodian is responsible for managing the funds in the account. The custodian has a fiduciary duty to manage the account prudently, but once the minor reaches the age of majority, he/she has complete rights to the funds in the account. The assets are the legal property of the minor, and the parent has no legal control over the uses of the proceeds of the account. All withdrawals from the account are taxed at the minor's rate. Putting money into a UGMA account can negatively impact the chances for financial aid, since financial aid officers may weigh children's assets more heavily than parents' assets.
UTMA
Uniform Transfers to Minors Act. Law which extends the Uniform Gift to Minors Act's definition of a gift to include real estate, fine art, patents and royalties.
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