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.
Special Benefits for New Jersey Residents
The state of New Jersey, in part through the New Jersey College Affordability Act, has provided some exciting new benefits for Franklin Templeton 529 College Savings Plan account holders.
Up to $10,000 state tax deduction.3
Matching Grant Program of up to $750 into new accounts.4
Doubling the tax-free scholarship to $3,000.5
And investing in Franklin Templeton 529 College Savings Plan still won't interfere with New Jersey Financial Aid.
Plan assets of up to $25,000 won’t be included in determining a beneficiary’s eligibility to receive financial aid awarded by the state of New Jersey.6
Pop Quiz: Test Your 529 Knowledge
529 plans can be used for trade schools and apprenticeships
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.7
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.
Want To Learn More?
Check out these materials to learn about successfully saving for college with the Franklin Templeton 529 College Savings Plan.
Take advantage of the many benefits Franklin Templeton has to offer and start saving today.
- 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.
- The New Jersey College Affordability Act allows for a state tax deduction of up to $10,000 per taxpayer with gross income of $200,000 or less, beginning with contributions made in tax year 2022.
- The New Jersey College Affordability Act allows taxpayers with gross income of $75,000 or less to be eligible for a one-time grant of up to $750 matched dollar-for-dollar of the initial deposit into a Franklin Templeton 529 College Savings Plan account for accounts open on or after June 29, 2021. Application and details to follow shortly on hesaa.org. This program is subject to available funding.
- Effective June 7, 2021, the NJBEST scholarship amount was increased to a total of $3,000. Investing in a Franklin Templeton 529 College Savings Plan does not guarantee admission to any particular elementary or secondary school or to college, or sufficient funds for elementary or secondary school or for college. The scholarship is only available for college and is awarded any fall or spring semester of college. The NJBEST Scholarship is provided by the New Jersey Higher Education Student Assistance Authority.
- Investing in the Franklin Templeton 529 College Savings Plan does not guarantee admission to any particular elementary or secondary school or to college, or sufficient funds for elementary or secondary school or for college. The scholarship is only available for college and is awarded during any fall or spring semester of college.
- Please refer to the Investor Handbook for more information.
Investors should carefully consider the 529 plan's investment goals, risks, charges and expenses before investing. To obtain the Investor Handbook, which contains this and other information, talk to your financial professional or call Franklin Distributors, LLC, 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.
Franklin Templeton's 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.
Investments in the Franklin Templeton's 529 College Savings Plan are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of New Jersey, Franklin Distributors, LLC, Franklin Resources, Inc., or its affiliates and are subject to risks, including loss of principal amount invested. Investing in the plan does not guarantee admission to any particular primary, secondary school or college, or sufficient funds for primary, secondary school or college.
Franklin Templeton, its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax professional.
©2021. Franklin Distributors, LLC. Member FINRA/SIPC.
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Franklin Distributors, LLC. Member FINRA/SIPC. Prior to July 7, 2021, Franklin Templeton Distributors, Inc., and Legg Mason Investor Services, LLC served as mutual fund distributors for Franklin Templeton.
