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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
  • Inception1998
  • State agency
    New Jersey Higher Education Student Assistance Authority (HESAA)
  • Tax deduction
    Tax deduction for single filers None
    Tax deduction for joint filers None
  • Program Manager
    Franklin Templeton Distributors, Inc.
  • Program distributor
    Franklin Templeton Distributors, Inc.
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for NJ residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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.

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.


2.07out of 5

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.

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.

Investment Options

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:

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Portfolio Fees & Performance Lookup

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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 0.35% to 0.79% (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% - 0.89%

Taxes and other Benefits

  • Tax deduction for single filersNone
  • Tax deduction for joint filersNone

Note

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 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:

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Want to Boost your Savings?

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Alternative 529 Plans

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41,884 clicked to enroll
NextGen 529 -- Client Direct Series

The Maine NextGen 529 -- Client Direct Series is available through Merrill Edge. The plan utilizes BlackRock (including iShares) funds in its age-based and static options. In addition, the Principal Plus Portfolio and the NextGen Savings Portfolio are available.

Our rating for residents
Our rating for non-residents
Fees - 0.53%
Performance
1-YR
3-YR
5-YR
10-YR
9.69%
7.82%
9.61%
6.92%

Why we like this plan

  • Strong long-term performance
  • Low fees
  • Matching Grants for qualifying accounts
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49,171 clicked to enroll
T. Rowe Price College Savings Plan

T. Rowe Price College Savings Plan, the nationally-branded version of Alaska's direct-sold 529 savings program mirrors the University of Alaska College Savings Plan but lacks the ACT Portfolio found in the UA program. The enrollment-based and static portfolios available in this program utilize T. Rowe Price mutual funds.

Our rating for residents
Our rating for non-residents
Fees - 0.7%
Performance
1-YR
3-YR
5-YR
10-YR
12.2%
9.5%
-
-

Why we like this plan

  • Strong long-term performance
  • Protection from creditors
enroll now
145,430 clicked to enroll
New York's 529 College Savings Program -- Direct Plan

New York's direct-sold 529 college savings plan is available to residents of any state. It offers low fees and diverse investment options featuring Vanguard mutual funds. New York residents may enjoy a state tax deduction for contributions to the plan.

Our rating for residents
Our rating for non-residents
Fees - 0.13%
Performance
1-YR
3-YR
5-YR
10-YR
-
-
-
-

Why we like this plan

  • Strong long-term performance
  • Low fees
  • Large tax deduction on contributions for residents

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:

https://www.NJBEST.com

Telephone:

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

Twitter

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