Do 529 plan expenses vary among states?
Answer
Yes. There are great differences in the amount and types of fees and expenses that 529 plans charge in various states. Pay close attention to those charges when choosing a plan. In some cases, fees and expenses can significantly affect your account's return.
Fees commonly charged include enrollment fees, annual account maintenance fees, expenses charged for making changes to your account, and investment management fees (for a state savings account). Some fees and expenses apply only to out-of-state residents, and some fees may be higher for nonresidents. Some fees may be waived altogether under certain circumstances (e.g., if you set up a payroll deduction plan for automatic contributions to 529 plan).
Keep in mind that plans that contain the lowest fees and expenses aren't necessarily the best plans. Be sure to weigh these charges along with other factors, including investment performance, program management, and possible state tax deductions.
GE 37712 (03/07)
If you are investing in a 529 plan outside of your state of residence, you may lose available state tax benefits. Make sure you understand your state tax laws to get the most from your plan.
529 plans are subject to enrollment, maintenance, administration/management fees and expenses. 529 plans are subject to fluctuation in value and market rise, including loss of principal.
Investors should consider the investment objectives, risks, charges, and expenses of 529 plans carefully before purchasing. More information about 529 plans can be found in the issuer's official statement. Please read the official statement carefully before investing.
AXA Equitable does not provide legal or tax advice.
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