NJBEST

Frequently Asked Questions

What about your questions?

Tell us what questions you have about saving for college.

Please send us your questions. Although we won’t be posting them just yet, they will be read and will help guide future topics.
Protect yourself from identity theft. Never disclose account or other financial information in your questions to us.

What can I use the money for?

Qualified higher-education expenses include:
• Tuition
• Certain room-and-board expenses
• Fees
• Books
• Supplies and computer equipment

Questions? Call us at 877-4-NJBEST or read the the Investor Handbook for more information.

How do I withdraw money for education expenses?

Online, Telephone or by Mail

To make an online withdrawal to the account owner:
Logon to your NJBEST account
• The proceeds may then be sent by check to the address on file or electronically to a bank account on file
• Allow up to 10 calendar days for receipt of a check or 2-3 business days for receipt of an electronic funds transfer

To make a withdrawal by phone to the account owner or the school directly (if on file):
• Call us at 877-4-NJBEST

To make a withdrawal by mail for proceeds to be sent directly to the college, a third party or a new checking/savings account:
• Download and print the Withdrawal Request Form
• Requests to send a check directly to the college, the beneficiary's address currently on file, or to the beneficiary's or your bank account may be returned via fax to (727) 299-8719
• Requests to send proceeds by check, Federal Wire or electronically to a third party require that you obtain a signature guarantee stamp, as indicated in Section 4, and the completed form must be returned by mail to NJBEST 529 College Savings Plan, P.O. Box 33090, St. Petersburg, FL 33733-8090.

To avoid processing delays, make sure you've filled out all sections of the form. And remember to factor mailing time into your planning.

How are withdrawals reported to the IRS?

You or the student will receive IRS Form 1099-Q in the first quarter, if you made a withdrawal the previous year. Note: If you received the money, then you get the form. If the child or school received the money, the child will get the form.

This form will show gross distributions, earnings, and principal. If any of the earnings are considered taxable, they should be reported on Form 1040 as part of a federal income tax return. Be sure to keep records of all qualified expenses.

Can the funds in my NJBEST 529 account be used for a school outside of New Jersey?

Yes! The money on your NJBEST 529 account can be used at a wide range of schools. In fact, money in your 529 account can be used at over 10,000 accredited schools in the U.S., and many outside the U.S.

Source: http://ope.ed.gov/accreditation, April 2016.

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 beneficiary's home state offers any state tax or other benefits that are available for investments only in its qualified tuition program. Each plan account is subject to an annual program management fee of 0.10% of assets and underlying fund ex-penses, currently up to 0.81% of assets, which may vary. See the Investor Handbook for more complete information.

1Investing 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.

2Please read the Investor Handbook for more information.