Why haven’t you started saving for education yet?
NJBEST offers many features that NJ families are looking for like low contribution minimums, no sales charges, a wide range of investment options, innovative tools and special benefits exclusive to New Jersey families.
Or…
Do you still believe the myths about 529 savings plans?
Myths vs Facts
MYTH:
With NJBEST, my child will need to go to college in New Jersey.
FACT:
Your child doesn’t have to go to college in New Jersey! You can use NJBEST for most schools in the United States including vocational schools and certified apprenticeships, no matter where your 529 savings plan is based.
MYTH:
I can only use NJBEST if my child goes to a 4-year college or university.
FACT:
NJBEST 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.
Additionally, 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). What expenses will be regarded as “tuition” in the case of public schools may vary by state1
MYTH:
Grandparents cannot open a 529 plan, only parents can.
FACT:
Parents, grandparents, aunts, uncles, friends... almost anyone can be an account owner with a valid U.S. Tax ID and a permanent address. You can even open an NJBEST plan for yourself!
MYTH:
I make too much money to contribute to a 529 plan.
FACT:
It does not matter how much you earn. 529 plans have no income limits.
MYTH:
I can only open a plan if I have children.
FACT:
529 plans are for people of all ages! Are you considering changing careers or pursuing another degree? Are you planning to have children soon? You can always open an account in your name and change the beneficiary later to another person in your family.
MYTH:
NJBEST will only cover tuition, but I have so many other education expenses which are not covered.
FACT:
NJBEST savings can be used for any qualified tuition expense. Additionally, for accredited higher education schools (e.g. college, vocational schools, or certified apprenticeships ), savings can be used for additional qualified expenses including mandatory fees, supplies, books or other required equipment, and room and board, if the beneficiary is enrolled at least half-time.1
MYTH:
When my child turns 18, they will just take the money and use it for something else – like a new car.
FACT:
You have control! The NJBEST account owner owns the plan’s assets and controls how and when they will be used. Unlike an UGMA/UTMA, the NJBEST beneficiary has no legal rights to the plan’s assets, even when they turn 18.
Don’t you feel better about 529 plans?
Are you ready to open one?
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 Distributors, LLC, 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 state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.
NJBEST New Jersey's 529 College Savings Plan is offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA); managed and distributed by Franklin Distributors, LLC, an affiliate of Franklin Resources, Inc., which operates as Franklin Templeton.
Investments in NJBEST 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 Templeton, 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.
