United States
Franklin Templeton 529 College Savings Plan offers a flexible, convenient and trusted way to invest for your child’s education.
FLEXIBLE
- Choose from most accredited two- and four-year colleges and universities and vocational schools, including many outside the U.S., as well as certified apprenticeships.1
- Up to $10,000 per year per beneficiary can be used for tuition at eligible public, private and religious K-12 schools.1
- Save for a child, grandchild, friends—even yourself.
CONVENIENT
- Get started for as little as $25.
- Set up automatic investments and make saving easy.
- Crowdfund with family and friends using SpryngTM.
TRUSTED
- Used by more than 200,000 families across the U.S.2
- Established in 2003.
- The parent, not the child, controls the money – even once the child become an adult.
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529 plans can be used for trade schools and apprenticeships
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Check out these materials to learn about successfully saving for college with the Franklin Templeton 529 College Savings Plan.
10 Things You Should Know About Franklin Templeton 529 College Savings Plan
They Pay for More than Just Tuition
Savings can be used for any qualified tuition expenses. Additionally, savings can be used at accredited colleges and certain vocational schools for qualified expenses which can include mandatory fees, supplies, books or other required equipment, and room and board, if the beneficiary is enrolled at least half-time. Savings can also be used for certain certified apprenticeship expenses.1
You Can Change Beneficiaries
The beneficiary can be changed to a member of the immediate or extended family (including siblings, grandchildren, nieces, nephews, cousins and more).
The Owner Controls 529 Plan Assets
The account owner—not the beneficiary—maintains control of the assets, including how and when they will be used.
Flexible Contribution Amounts
Franklin Templeton 529 College Savings Plan allows account owners to open an account with as little as $25 and contribute $305,000 per beneficiary over the lifetime of the account.3
Wide Range of Schools
529 savings can be used at most accredited two- and four-year colleges and universities and vocational schools, including many outside the U.S., as well as certified apprenticeships. Up to $10,000 per year per beneficiary can be used for tuition for eligible public, private and religious primary and secondary educational institutions (K-12). At this time, it is not clear what, if any, expenses will be regarded as “tuition” in the case of public schools.1
No Income Restrictions
Anyone can open a plan regardless of his or her income.
Multiple Investment Options
Franklin Templeton 529 College Savings Plan offers a wide range of investment choices allowing you to invest your assets in the portfolio(s) that best suit your education savings goals.
Convenience
Franklin Templeton 529 College Savings Plan offers features that make it a convenient way to save for college, including monthly automatic investment plans and portfolios that automatically rebalance as the beneficiary gets closer to college.
Earnings Grow Tax Free
Earnings grow federal income tax-free, and earnings are free from federal income tax when withdrawn for qualified higher education expenses, used up to $10,000 per year for tuition for eligible primary and secondary schools, or up to $10,000 may be paid toward principal or interest of a student loan for the beneficiary or a sibling.1
Estate Planning
Five years worth of gifts (up to $75,000 for an individual or $150,000 if a married couple) can be made at once to a 529 plan without owing federal gift tax, as long as no other gifts are made to the same beneficiary over the five years.
Take advantage of the many benefits Franklin Templeton has to offer and start saving today.
Tax benefits are conditioned on meeting certain requirements. Federal income tax, a 10% federal tax penalty, and state income tax and penalties may apply to nonqualified withdrawals of earnings. Generation-skipping tax may apply to substantial transfers to a beneficiary at least two generations below the contributor. Gift examples are general; individual financial circumstances and state laws vary—consult a tax advisor before investing. If the contributor dies within the five-year period, a prorated portion of contributions may be included in their taxable estate. See the Investor Handbook for more complete information.
- Federal tax law 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 clear what public K-12 school costs, if any, will be regarded as tuition for this purpose. Additionally, amounts paid as principal or interest on certain existing loans of the Beneficiary or their sibling, subject to various limits including annual limits, can constitute qualified distributions. State tax benefits and treatment of withdrawals for K-12 tuition and loans 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.
- As of 12/31/2019.
- Please refer to the Investor Handbook for more information.
Investors should carefully consider plan investment goals, risks, charges and expenses before investing. To obtain the Investor Handbook, which contains this and other information, call Franklin Templeton Distributors, Inc., the manager and underwriter for the plan, at (800) DIAL BEN® / (800) 342-5236. 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.
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.
Franklin Templeton 529 College Savings Plan 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. 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.
See the Investor Handbook for more information on Franklin Templeton 529 College Savings Plan, including sales charges, expenses, general risks of the Plan, general investment risks and specific risks of investing in Plan portfolios, which can include risks of convertible securities; country, sector, region or industry focus; credit; derivative securities; foreign securities, including currency exchange rates, political and economic developments, trading practices, availability of information, limited markets and heightened risk in emerging markets; growth or value style investing; income; interest rate; lower-rated and unrated securities; mortgages, asset-backed and credit-linked securities; life settlement investments; restructuring and distressed companies; securities lending; smaller and midsize companies; and stocks.
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Franklin Templeton Distributors, Inc.
