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Features Of The NJ 529 Plan

Named after section 529 in the Internalbe applicable in certain cases. However,
Revenue Code, the 529 plan in the US hasthere is a fee to maintain the account. An
several tax advantages that benefitannual 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 Collegeare not residents of New Jersey. For
Savings Plan in the state of New Jersey. Thisresidents of the state, the annual
is a savings plan, as the name suggests, andmaintenance fee is waived off. In addition
the account is opened through a broker. Thethere is a 0.40% account manager fee, and
state agency for managing this plan is theservicing fees that might range from 0.25% to
New Jersey state HESAA (Higher Education1%.
Student  Assistance  Authority).
5. People who are the beneficiaries of a NJ
The following are some features of the NJ 529529 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 wellsubject to meeting with the requirements of
as nonresidents. Both of them will have tothe  plans.
enter into this plan through agencies. All
individuals who have reached the legal age6. The NJ 529 plan includes an automatic
and legal entities like trusts andinvestment plan, to which monthly
corporations are allowed to become owners orcontributions 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, thepurchase needs to be made to keep the
maximum allowable contribution with the NJautomatic 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 makingfees.
contributions. The minimum limit for the
first contribution is kept at $250 per owner7. A qualified withdrawal from a NJ 529 plan
per beneficiary. After that, furthercan 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 accountwithdrawal, 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 forof the value of the plan.
opening an account, but sales charges might