Advantages of NJBEST

Advantages of NJBEST

NJBEST 529 College Savings Plan was created to help New Jersey families like yours save for college. It offers maximum flexibility and diverse investments to fit the needs of almost any investor.

Smart Benefits

Control Over Plan Assets

As the plan owner, you decide how and when your assets will be spent for higher education expenses. If the beneficiary you've saved for decides not to go to college, you can use the funds to educate another family member.1

Potential College Scholarship Of Up To $1,500

Students at New Jersey colleges and universities can receive a tax-free scholarship whose value increases along with time and investment in the plan.2

Use Your Saving At Any Accredited College

Plan assets can be used at any accredited college, not just colleges or universities in New Jersey, but admissions are not guaranteed by the 529 plan.

Limited Interference With Other New Jersey Financial Aid

The first $25,000 in savings will be excluded from the criteria used to determine eligibility for financial aid awarded by the state of New Jersey.1

Low Minimum Contributions

You can open an NJBEST plan with as little as $25.1

High Contribution Limits

You can keep making contributions until the plan value for a beneficiary is $305,000.

No Income Restrictions

You can open a plan regardless of how much you earn.

Smart Tax Advantages

Double Tax-Free Investing

Your investments grow free from federal and New Jersey state income tax, and qualified withdrawals are also not subject to federal or New Jersey state income tax.

Special Gift and Estate Tax Treatment

A contribution in one year of up to $75,000 to a single beneficiary (or $150,000 if a given by a married couple) is generally excludable for federal gift and estate tax purposes if the contributor makes no further gifts to the beneficiary for five years.

Combined Financial Statements and Supplemental Information

Combined Financial Statements and Supplemental Information

Tax benefits are conditioned on meeting certain requirements. Federal income tax, a 10% federal 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.

529 plans have risks which cause investment return and principal value to fluctuate, these can include risks of stocks; bonds, including lower-rated; and foreign investing, especially in developing markets. These and other risks are discussed in the Investor Handbook.

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 (877) 4NJ-BEST. You should read the Investor Handbook carefully before investing and consider whether your or the account 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.

  1. Please read the Investor Handbook for more information.
  2. Investing in NJBEST does not guarantee admission to college in New Jersey or elsewhere. The scholarship is awarded during the beneficiary's first year of college.