529 PLANS

Scholar'sEdge

New Mexico

New Mexico's Scholar'sEdge, an advisor-sold 529 savings program, managed by OppenheimerFunds, features age-based and static portfolio options utilizing OppenheimerFunds, American Century, Dreyfus, Monetta, and MainStay mutual funds along with a stable value option. To find a financial advisor in your area, use the Directory of Financial Professionals.

5-Cap Rating

Resident:
Non-Resident:

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
3.35 3.46 2.70 4.20 0.63

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Enroll in Scholar'sEdge through a financial advisor. Search our directory of qualified financial professionals to find one near you.

General

Program type:

Savings

How to enroll:

Enroll through a financial advisor. Enroll Now

Initial year of operation:

2001

State agency(ies):

Education Trust Board of New Mexico

Program manager:

OFI Private Investments, Inc., a subsidiary of OppenheimerFunds, Inc.

Program distributor:

OppenheimerFunds Distributor, Inc.

Manager contract term:

Through June 30, 2020.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens at least 18 years old, emancipated minors, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in New Mexico's 529 plans for the same beneficiary reach $400,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $250 ($25 per portfolio), and the minimum subsequent contribution is $25. With the automatic investment plan, the minimum contribution level is $25.

Investment Options

Age-based investment options:

The Age-Based Option contains 8 portfolios invested in mutual funds. Contributions are placed into six of the portfolios corresponding to the age of the beneficiary and later reassigned to more conservative portfolios as the beneficiary approaches college. Two fixed income options are also available within the age-based approach.

Static investment options:

Select among 8 multi-fund portfolios with varying risk tolerances, 28 individual-fund portfolios, and the Capital Preservation Portfolio.

Underlying investments:

OppenheimerFunds, American Century, Dreyfus, Monetta and MainStay mutual funds; the Capital Preservation Portfolio invests primarily in investment contracts issued by New York Life Insurance Company.

Underlying fund allocations:

Click here, you need Microsoft Excel to open this document.

Investment performance link:

Click here to visit, link to the program website containing most current performance data.

Portfolio Fees & Performance Lookup

Click here to visit, pricing and performance details for each portfolio in each share class. Data can be plugged into FINRA's 529 Expense Analyzer.

Fees & Expenses

Enrollment or application fee:

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$25 annually for accounts with less than $25,000, waived if either the designated beneficiary or account owner is a New Mexico resident and for accounts in an automatic contribution plan.

Program management fees:

0.20% management fee (includes 0.10% fee to the state), plus distribution/servicing fees of 0.25% for Class A and 1.00% for Class C (0.50% for class C of the Capital Preservation Portfolio). The Institutional Money Market Portfolio has no distribution/servicing fees

Expenses of the underlying investments:

Ranges from 0.40% to 0.67% (portfolio weighted average) in the age-based and static multi-fund portfolios, from 0.15% to 1.29% in the individual-fund portfolios, and 0.01% in the Capital Preservation Portfolio.

Total asset-based expense ratio:

Class A: 0.35% - 1.74%
Class C: 0.35% - 2.49%

Broker loads and commissions:

Class A:
Maximum initial sales charge: 4.75%
Dealer: 4% commission and 0.25% annual trail beginning immediately

Class B: Closed to new accounts and additional purchases by existing Participants as of October 28, 2011

Class C:
CDSC: 1% within the first 12 months only (0.50% on Capital Preservation Portfolio)
Dealer: 1% commission and 1% annual trail beginning in month 13

Breakpoint pricing:

A share sales load (dealer commission):
Less than $50,000 - 4.75% (4.00%)
$50,000 - $99,999 - 4.50% (3.75%)
$100,000 - $249,999 - 3.50% (2.75%)
$250,000 - $499,999 - 2.50% (2.00%)
$500,000 - $999,999 - 2.00% (1.60%)
$1 million and over - 0.00% (1.00%), 1% CDSC imposed when redeemed within 18 months

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to a New Mexico 529 plan are fully deductible in computing New Mexico taxable income.

Value of in-state tax benefits:

Investment time horizon:
18 yrs (i.e. newborn): 0.21% annualized
10 yrs (i.e. 8-yr old): 0.38% annualized
2 yrs (i.e. 16-yr old): 1.93% annualized
Based on 4.9% NM tax rate. (For assumptions see 529 State Tax Calculator.)

State tax recapture provisions:

The principal portion of rollovers and nonqualified withdrawals from this plan are included in New Mexico taxable income to the extent of prior New Mexico tax deductions.

State tax treatment of qualified distributions:

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

State tax treatment of rollovers:

New Mexico follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

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

Yes

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

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

None.

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:

Accepts 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?

No

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

Plan Description and Participation Agreement

Contact

Web site:

visit Enroll Now

Telephone:

1-866-529-7283

Telephone for broker use:

1-866-529-7283

State News

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