When it comes to saving for a child's college education, it's important to choose the right investment plan. As various savings plans differ substantially, you'll want to compare features and benefits before you invest.

The table below provides a snapshot of NJBEST 529 College Savings Plan compared with other college savings plans. Understanding each plan's tax benefits, account ownership, account control issues and options, and overall flexibility can help you work effectively with your tax and financial advisors to choose the right savings vehicle for your family.

Plan Comparison Table   NJBEST 529 College Savings Plan UGMA/UTMA Coverdell Education Savings Account Investments grow tax deferred Yes. Money grows income tax-deferred, and qualified distributions are federal income tax free. No (earnings taxed at minor's rate) Yes Maximum contribution $305,000 None $2,000 per beneficiary under age 18, per year3 Maximum income to qualify No limits No limits Phases out for single filers at $95,000 to $110,000; for joint filers at $190,000 to $220,000 Control of assets Plan owner Custodian, until minor reaches age of majority (varies by state) Account owner (responsible individual) Ability to change beneficiary In most instances, beneficiary can be changed to another member of the previous beneficiary's family without penalty. See NJBEST Investor Handbook for more information N/A Can be transferred to the account of an eligible member of the same family, without penalty Estate-planning features Assets are generally transferred out of the donor's estate, yet the donor retains control. See NJBEST Investor Handbook for more information Assets are transferred out of the donor's estate Assets are transferred out of the contributor's estate Freedom to choose colleges Can be used for qualified expenses at almost any accredited post-secondary school in the U.S. To benefit from the scholarship program, beneficiary must attend a New Jersey school No restrictions on use Can be used for any qualified educational expenses in primary, secondary or post-secondary school. Must be used before beneficiary is age 303 Early or nonqualified withdrawals Earnings are taxable and subject to a 10% federal tax penalty, state taxes and penalties None Earnings are taxed at beneficiarys rate, plus a 10% federal penalty Investments available Franklin Templeton Investments2 - Age-based allocation or 6 customized portfolios. ( Corefolio®, S&P 500 Index 529 Portfolio, Franklin Stable Value 529 Portfolio, Growth, Growth & Income or Income portfolios) Wide range of securities, personal property, etc. as permitted by state law Any legal security Offers a scholarship to New Jersey colleges Yes, up to $1,500 No No

Each plan account is subject to an annual program management fee of 0.40% of assets and underlying fund expenses, currently up to 0.82% of assets, which may vary. See the Investor Handbook for more complete information.

Tax benefits may be conditioned on meeting certain requirements. Federal tax, a 10% penalty and state tax 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.

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 1-877/4NJBEST or click here. 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 benefits that are available for investments only 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 college or sufficient funds for college. Please refer to the Investor Handbook for more complete information.
2.	The plan is managed by Franklin Advisers, Inc., an affiliate of Franklin Templeton Distributors, Inc. Plan portfolios generally invest in mutual funds managed by affiliates of Franklin Advisers, Inc.
3.	Except in the case of a special needs beneficiary.