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NJBEST 529 College Savings Plan
New Jersey's NJBEST 529 College Savings Plan is managed by Franklin Templeton and features age-based and static portfolio options utilizing mutual funds and/or ETFs along with a money market option.
- Program typeSavings
- State agencyNew Jersey Higher Education Student Assistance Authority (HESAA)
- Tax deduction
- Program ManagerFranklin Templeton Distributors, Inc.
- Program distributorFranklin Templeton Distributors, Inc.
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
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?
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.
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.
Age-based investment options:The Age-Based Investment Portfolios option offers the choice of 3 risk levels: Growth, Moderate, and Conservative. Each consists of 4 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.View more age-based investment options
Static investment options:Select among 4 multi-fund portfolios (Franklin Growth Allocation, Franklin Corefolio, Franklin Growth & Income Allocation, and Franklin Income Allocation), S&P 500 Index portfolio, and the Franklin Money 529 portfolio.View more static investment options
Underlying investments:Franklin Templeton mutual funds, a Franklin Templeton money market portfolio and possibly ETFs.View a full list of this plan's investment options
Underlying fund allocations:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
Fees & Expenses
Enrollment or application fee:None.
Account maintenance fee:None.
Program management fees:0.10% manager fee
Expenses of the underlying investments:Ranges from 0.45% to 0.77% (portfolio weighted average) in the age-based and objective-based portfolios, and from 0.04% to 0.19% in the individual-fund portfolios.
Total asset-based expense ratio:0.14% - 0.87%
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
New Jersey doesn't offer tax deductions
Program match on contributions:There is no program match, however New Jersey beneficiaries are eligible for a one-time scholarship of up to $1,500 for the first semester at any New Jersey college or university subject to minimum participation and contribution requirements.
State tax deduction or credit for contributions:None.
State definition of qualified expensesThe state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.
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
Does the program have a formal agreement with a rewards program or outside scholarship 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:UNLOCK PRO
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.