| Named after section 529 in the Internal | | | | be applicable in certain cases. However, |
| Revenue Code, the 529 plan in the US has | | | | there is a fee to maintain the account. An |
| several tax advantages that benefit | | | | annual fee of $25 is imposable with |
| investment. | | | | contributions that are at the most $25,000. |
| | | | These fees are applicable only to people who |
| Franklin Templeton manages the 529 College | | | | are not residents of New Jersey. For |
| Savings Plan in the state of New Jersey. This | | | | residents of the state, the annual |
| is a savings plan, as the name suggests, and | | | | maintenance fee is waived off. In addition |
| the account is opened through a broker. The | | | | there is a 0.40% account manager fee, and |
| state agency for managing this plan is the | | | | servicing fees that might range from 0.25% to |
| New Jersey state HESAA (Higher Education | | | | 1%. |
| Student Assistance Authority). | | | | |
| | | | 5. People who are the beneficiaries of a NJ |
| The following are some features of the NJ 529 | | | | 529 plan become eligible for up to $1,500 in |
| plan: | | | | tuition fees at any college or university |
| | | | within the state. These eligibilities are |
| 1. The plan is open to both residents as well | | | | subject to meeting with the requirements of |
| as nonresidents. Both of them will have to | | | | the plans. |
| enter into this plan through agencies. All | | | | |
| individuals who have reached the legal age | | | | 6. The NJ 529 plan includes an automatic |
| and legal entities like trusts and | | | | investment plan, to which monthly |
| corporations are allowed to become owners or | | | | contributions can be made. The minimum amount |
| participants in these plans. | | | | required to open an automatic investment plan |
| | | | is $50, and that amount of additional |
| 2. For both residents and nonresidents, the | | | | purchase needs to be made to keep the |
| maximum allowable contribution with the NJ | | | | automatic plan active. For account owners who |
| 529 plan is $305,000. | | | | have joined in the automatic investment plan, |
| | | | there is a waiver of the annual maintenance |
| 3. There is a minimum limit for making | | | | fees. |
| contributions. The minimum limit for the | | | | |
| first contribution is kept at $250 per owner | | | | 7. A qualified withdrawal from a NJ 529 plan |
| per beneficiary. After that, further | | | | can be made at any time. However, if an |
| contributions of $50 each are to be made. | | | | account owner makes an unqualified |
| These limits are the same for all account | | | | withdrawal, i.e. a withdrawal for a purpose |
| owners, resident and nonresident. | | | | other than paying the tuition fees of the |
| | | | beneficiary, then there is a penalty of 10% |
| 4. There are no fees for enrollment or for | | | | of the value of the plan. |
| opening an account, but sales charges might | | | | |