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NJBEST 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
  • In addition, up to $10,000 may be paid toward principal or interest of a student loan for the beneficiary or a sibling.1
  • Transfer savings to another family member

Convenient

  • Get started for as little as $25
  • Set up automatic investments and make saving easy
  • Crowdfund with family and friends using Ugift®8

Trusted

  • Used by more than 64,000 NJ families2
  • Established in 2003

Join thousands of other New Jersey families and start saving today.

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What Makes NJBEST Special for New Jersey Families

State Tax Deduction

New Jersey taxpayers, with gross income of $200,000 or less, may qualify for a state income tax deduction for contributions into an NJBEST plan of up to $10,000 per year.3

Matching Grant Program

One-time grant of up to $750 matched dollar-for-dollar of the initial deposit into a new NJBEST account for a new beneficiary. Visit HESAA's site for terms and conditions and how to apply.4

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Scholarship Opportunity

Students at New Jersey colleges or universities can receive a tax-free college scholarship worth up to $6,000, depending on how long the plan has been open.5

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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

Ugift®

Make saving for education easier with Ugift®, a quick and easy way for family and friends to make contributions towards your NJBEST 529 College Savings Plan. Ugift® provides a confirmation of the contribution to the 529 account which could be helpful come tax time.8

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10 Other Things You Should Know About the NJBEST 529 College Savings Plan

1. 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. In addition, up to $10,000 may be paid toward principal or interest of a student loan for the beneficiary or a sibling.1

2. 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).6

3. 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.6

4. Flexible Contribution Amounts

NJBEST allows account owners to open an account with as little as $25 and to contribute $305,000 per beneficiary over the lifetime of the account.6

5. 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. 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). At this time, it is not clear what, if any, expenses will be regarded as “tuition” in the case of public schools.1

6. No Income Restrictions

Anyone can open a plan regardless of his or her income.

7. Multiple Investment Options

NJBEST offers a wide range of investment choices allowing you to invest your assets in the portfolio(s) that best suit your education savings goals.

8. Convenience

NJBEST 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.

9. 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
  • Paid toward principal or interest of a student loan for the beneficiary or sibling – up to $10,000.1
10. Estate Planning

Five years worth of gifts 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.7

Take advantage of the many benefits NJBEST has to offer and start saving today.

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  1. The Federal Tax Cuts and Jobs Act (TCJA), which was signed into law in December 2017 and became effective January 1, 2018, expanded the definition of a qualified higher education expense to include up to $10,000 (federal tax-free withdrawals) per year in tuition expenses at private, public and religious elementary and secondary schools (K -12). The state tax consequences of using 529 plans for elementary or secondary education tuition expenses will vary depending on state law and may include recapture of tax deductions received from the original state and may also include taxes and penalties. Some states do not offer state tax deductions or tax credits for K -12 tuition, and other restrictions may apply.
  2. As of January 30, 2024.
  3. The New Jersey College Affordability Act allows for a state tax deduction for contributions into a Franklin Templeton 529 College Savings Plan of up to $10,000 per year, for those with gross income of $200,000 or less, beginning with contributions made in tax year 2022. The maximum deduction is $10,000. Because each investor’s circumstances are different, please consult your tax professional for more information about considerations that may be relevant to your particular situation.
  4. The New Jersey College Affordability Act allows taxpayers with household adjusted gross income between $0 and $75,000 may be eligible for a one-time grant of up to $750 matched dollar-for-dollar of the initial deposit into an NJBEST account for accounts open on or after June 29, 2021. Visit HESAA's site for terms and conditions and how to apply. This program is subject to available funding.
  5. Investing in NJBEST 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 scholarship may be awarded only once to an eligible beneficiary. The NJBEST Scholarship is provided by the New Jersey Higher Education Student Assistance Authority.
  6. Please refer to the Program Description for more information.
  7. Because contributions to 529 plans are generally considered completed gifts for federal gift, estate, and generation-skipping transfer tax purposes they qualify, for the annual exclusion from gift taxes. Please refer to IRS for the latest gift tax limits. Accelerated gifting is a special provision of 529 plans that permits a contributor to combine five years of contributions (the current year plus four future years) in a single year. However, no additional gifts may be made until five years have passed.
  8. Ugift® is an optional service, is separate from the Plan, and is not affiliated with HESAA, the Program Manager or any affiliate thereof. For more information on Ugift®, visit www.ugift529.com

Investors should carefully consider plan investment goals, risks, charges and expenses before investing. To obtain the Program Description, 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 Program Description 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.

The Program and its associated persons make no representations regarding the suitability of the Program’s investment portfolios for any particular investor. This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation by Franklin Distributors, LLC. Other types of investments and other types of education savings vehicles may be more appropriate depending on your personal circumstances.  

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.

This material is being provided for general informational and educational purposes and should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel and provided for educational and informational purposes only. Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact your results. Franklin Templeton cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

© 2024. Franklin Distributors, LLC. Member FINRA/SIPC.