College Savings Plan Options

Franklin Templeton Investments distributes two 529 College Savings Plans. Below you can find certain information about each plan and the benefits of a 529 College Savings Plan.

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  • Franklin Templeton and NJBEST 529 College Savings Plan Comparison Chart¹

    AVAILABILITYDISTRIBUTION CHANNELINITIAL MINIMUM INVESTMENTPROGRAM MANAGEMENT FEESALES CHARGEINVESTMENT OPTIONSSCHOLARSHIP OPPORTUNITY
    Franklin Templeton 529 College Savings Plan Available nationwide Financial Advisor or Direct Sold (open an account on your own) $250 OR $25 with Automatic Investments 25 BPS Waived (A Shares at NAV) 3 Age-Based Portfolios2 
    5 Objective-Based Portfolios
    9 Individual Portfolios    		 For NJ Account Owners:
    Students attending New Jersey colleges or universities can receive a tax-free
    scholarship worth up to $1,500 depending on how long the plan has been open. See the Investor Handbook for details.
    NJBEST College Savings Plan 529 Plan Account owner or beneficiary must be a resident of New Jersey Direct Sold (open an account on your own) $25 10 BPS None 3 Age-Based Portfolios
    4 Objective-Based Portfolios
    2 Individual Portfolios    		 For NJ Account Owners:
    Students attending New Jersey colleges or universities can receive a tax-free
    scholarship worth up to $1,500 depending on how long the plan has been open. See the Investor Handbook for details.
    • Savings can be used for any qualified tuition expense. Additionally, for accredited higher education schools (e.g. college or vocational schools), savings can be used for additional qualified expenses including mandatory fees, supplies, books or other required equipment, and room and board, if the beneficiary is enrolled at least half-time2
    • Earnings grow federal income tax-free, and earnings are free from federal income tax when withdrawn for qualified higher education expenses or used up to $10,000 per year for tuition for eligible primary and secondary schools.2,3
    • The account owner has control over the assets and decides how and when they will be used.
    • The beneficiary can be changed to any member of the immediate family. See the Investor Handbook for additional family member types.
    • No income restrictions, anyone can open a 529 college savings plan.

Important Legal Information

Investors should carefully consider 529 plan investment goals, risks, charges and expenses before investing. To obtain the Investor Handbook, which contains this and other information, talk to your financial advisor or call Franklin Templeton Distributors, Inc., the manager and underwriter for the 529 plan at (800) DIAL BEN / (800) 342-5236 or visit franklintempleton.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 state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.

Footnote

  1. 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. Principal value may be lost, and investing in the plan does not guarantee admission to any particular primary or secondary school or to college or sufficient funds for primary or secondary school or for college. Please refer to the Investor Handbook for more complete information.
  2. The Age-Based Asset Allocations have been designed for savings intended for qualified higher education (i.e. college) expenses, not for elementary or secondary education tuition expenses.
  3. 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.
  4. Tax benefits are conditioned on meeting certain requirements. Federal income tax, a 10% federal tax penalty and state income tax and penalties apply to non-qualified withdrawals of earnings. Generation-skipping tax may apply to substantial transfers to a beneficiary at least two generations below the contributor. See the Investor Handbook for more complete information.

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Franklin Templeton Distributors, Inc.