10 Things You Should Know About The NJBEST 529 College Savings Plan
1. Federal tax law now provides that up to $10,000 per year may be withdrawn from a 529 savings plan federal income-tax free, if used for tuition expenses at private, public or religious primary and secondary (K-12) schools. It is not currently clear what public K-12 school costs, if any, will be regarded as tuition for this purpose. State tax benefits and treatment of withdrawals for K-12 tuition may vary by state, may not have been updated for changes in federal tax law and may be uncertain; consult a tax professional concerning your state.
2. As of June 30, 2017.
3. NJBEST survey conducted via email on April 20, 2016; 398 respondents.
4. Please refer to the Investor Handbook for more information.
529 plans have risks which cause investment return and principal value to fluctuate, these can include risks of stocks; bonds, including lower-rated; and foreign investing, especially in developing markets. These and other risks are discussed in the Investor Handbook.
All investments involve risks, including possible loss of principal. Investors should carefully consider college savings plan investment goals, risks, charges and expenses before investing. To obtain an Investor Handbook, which contains this and other information, call Franklin Templeton Distributors, Inc., the manager and underwriter for the plan, at (877) 4NJ-BEST or visit njbest.com. You should read the Investor Handbook carefully before investing and consider whether your or the beneficiary’s home state offers any state tax or other benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.
NJBEST is offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA); managed and distributed by Franklin Templeton Distributors, Inc., an affiliate of Franklin Resources, Inc., which operates as Franklin Templeton Investments. No federal or state guarantee. Each plan account is subject to an annual program management fee of 0.10% of assets and underlying fund expenses, currently up to 0.76% of assets, which may vary. Please see the Investor Handbook for more complete information.
The New Jersey Better Educational Savings Trust Program ("NJBEST") is a higher education savings and investment program of the State of New Jersey designed to satisfy the requirements of Section 529 of the Internal Revenue Code. NJBEST is a service mark of the State of New Jersey. The State of New Jersey Higher Education Student Assistance Authority (HESAA) selects investment managers for NJBEST, adopts regulations and carries out other functions necessary for its operation.
HESAA has selected Franklin Templeton Distributors, Inc. ("FTDI") to provide, directly or through subcontractors, certain distribution, investment management and administrative services relating to NJBEST. FTDI has retained Franklin Mutual Advisers, LLC., a registered investment advisor, to serve as the initial investment manager for the Franklin® Templeton® investment options. Both FTDI and Franklin Mutual Advisers, LLC., are affiliates of Franklin Resources, Inc., which is a global investment organization operating as Franklin Templeton Investments. Through various Franklin Templeton entities, Franklin Templeton Investments provides global and U.S. investment, shareholder and distribution services to the Franklin, Templeton and Franklin Mutual Series funds and institutional accounts, as well as separate account management services.
This material is not a recommendation of any particular security, is not based on any particular financial situation or need, and is not intended to replace the advice of a qualified attorney, tax advisor, investment professional or insurance agent. Before making any financial commitment regarding a Section 529 college savings plan, consult with the appropriate financial advisor.