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Article #225: Features Of The NJ 529 Plan

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






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