NJBEST 529 College Savings Plan NEW! PDF ReportPRO

General

Program type:

Savings

How to enroll:

Enroll directly with the program.

Initial year of operation:

1998

State agency(ies):

New Jersey Higher Education Student Assistance Authority (HESAA)

Program manager:

Franklin Distributors, Inc.

Program distributor:

Franklin Distributors, Inc.

Manager contract term:

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Eligibility

State residency requirements:

The contributor or the beneficiary must be a New Jersey resident at the time of program enrollment.

Who can be a participant/owner in the program?

Individuals of legal age, trusts, corporations, UGMA/UTMA custodians, and other legal entities. Account owners must provide a Taxpayer Identification Number.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in New Jersey's 529 plans for the same beneficiary reach $305,000.

Minimum contributions:

$25 per investment option. Until total contributions to an account reach $1,200, a minimum of $300 per year must be contributed to keep an account open.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers an online tool to share a gift contribution link with family and friends., Designed exclusively for Franklin Templeton College Savings Plan account owners, Spryng is a personal crowdfunding tool designed to encourage family and friends to make contributions toward an education savings plan.

Investment Options

Age-based/Enrollment Year investment options:

The Age-Based Investment Portfolios option offers the choice of 3 risk levels: Growth, Moderate, and Conservative. Each consists of 10 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary ages.

Static investment options:

Choose from 6 multi-fund portfolios with objectives ranging from more aggressive to conservative, 14 individual-fund portfolios, including ESG (Environmental Social Governance) and MWBE (Minority-owned, Women-owned, Business Enterprise) options.

Underlying investments:

Franklin Templeton funds, affiliate funds (Brandywine Global Investment Management, LLC, Clarion Partners, LLC, ClearBridge Investments, LLC, Martin Currie Investment Management Limited, Royce Investment Partners and Western Asset Management Company, LLC), Ariel Fund, iShares, Schwab, and Vanguard.

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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See Investment Options

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.10% management fee; none for the Franklin U.S. Government Money 529 Portfolio

Expenses of the underlying investments:

Ranges from 0.20% to 0.24% (portfolio weighted average) in the age-based and objective-based portfolios, and from 0.03% to 0.75% in the individual-fund portfolios.

Total asset-based expense ratio:

0.13% - 0.85%

Taxes and other Benefits

Program match on contributions:

For accounts opened by a New Jersey resident on or after June 29, 2021, the New Jersey Higher Education Student Assistance Authority provides a one-time grant of up to $750 in a dollar-for-dollar match of the account owner's initial deposit into the account, subject to income and program participation requirements. Visit HESAA.com for terms and conditions and how to apply. This program is subject to available funding.

New Jersey beneficiaries are also eligible for a one-time scholarship of up to $3,000 for one semester at any New Jersey college or university subject to minimum participation and contribution requirements.

State tax deduction or credit for contributions:

New Jersey taxpayers, with gross income of $200,000 or less, may qualify for a state income tax deduction for contributions into an NJBEST plan of up to $10,000 per taxpayer, per year, beginning with contributions made in tax year 2022.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from New Jersey and non-New Jersey 529 plans are exempt.

State tax treatment of rollovers:

New Jersey follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes, by state regulation.

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accept requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

visit

Telephone:

1-877-4NJBEST (1-877-465-2378)

Twitter

NJBEST529