Facebook Pixel

NJBEST 529 College Savings Plan

4.5 / 5

Our rating

Best NJ resident benefits

NJ resident benefits

New Jersey's NJBEST 529 College Savings Plan is managed by Franklin Templeton and features Year of enrollment and static portfolio options utilizing mutual funds and/or ETFs along with a money market option.

Enroll Now
Enroll Now Count90,897 Clicked to Enroll
NJBEST 529 College Savings PlanTop of the Class

KEY METRICS

OVERVIEW

Program type

Savings

Inception

1998

State agency

New Jersey Higher Education Student Assistance Authority (HESAA)

Tax deduction

For single filers: $10,000/yr per beneficiary

For joint filers: $10,000/yr per beneficiary

Program manager

Franklin Distributors, Inc.

Program distributor

Franklin Distributors, Inc.

Manager contract term

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

Did you know?

  • NJ residents can claim a tax deduction for contributions to a NJ 529 plan.

    Up to $10,000/yr ($10,000/yr for single filers) per year are eligible.

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

NJBEST 529 College Savings Plan
Enroll Now
Enroll Now Count90,897 Clicked to Enroll

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

Investors in NJBEST 529 College Savings Plan can select from the following investment options. Click on a portfolio name for more information.

The Year of Enrollment option contains 11 portfolios of underlying mutual funds invest in Franklin Templeton. Contributions are placed into the portfolio corresponding to the anticipated year of college enrollment, and reassigned to the College Portfolio upon reaching that year.

Age-based/Enrollment Year investment options:

The Year of Enrollment option contains 11 portfolios of underlying mutual funds invest in Franklin Templeton. Contributions are placed into the portfolio corresponding to the anticipated year of college enrollment, and reassigned to the College Portfolio upon reaching that year.

Static investment options:

Choose from 3 multi-fund portfolios with objectives and 7 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:

Portfolio Fees & Performance Lookup

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:

0.18% (portfolio weighted average) in the year of enrollment and objective-based portfolios, and from 0.03% to 0.70% in the individual-fund portfolios.

Total asset-based expense ratio:

0.13% - 0.80%

Taxes and other Benefits

Tax deduction for single filers:

$10,000/yr per beneficiary

Tax deduction for joint filers:

$10,000/yr per beneficiary

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.

Calculate your New Jersey 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a New Jersey 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

The tax benefits described in this Program Description are federal tax benefits. State and local tax treatment may differ based on the state or states in which you pay taxes. You should also consult with your tax advisor about any state or local taxes, including income, gift, estate and generation-skipping transfer taxes.

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.

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:

Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

NJBEST 529 College Savings Plan
Enroll Now
Enroll Now Count90,897 Clicked to Enroll

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:

Contact

Start saving for your child's future today

Complete the online application and make your first deposit

NJBEST 529 College Savings Plan
Enroll Now
Enroll Now Count90,897 Clicked to Enroll

A good place to start:

See the best 529 plans, personalized for you

Enroll Now Count90,897 Clicked to Enroll
Helping families save for college since 1999
Join our email list

The latest articles and tips to help parents stay on track with saving and paying for college, delivered to your inbox every week.

Frequently featured in:

Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.

20533 Biscayne Blvd Ste 4 #199 Miami, FL 33180-1501Phone: (585) 286-5426Copyright © 2025 Saving for College, LLC. All Rights Reserved