Any Reasons I shouldn't switch 529 plan

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mlobur
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Joined: Sun Jun 03, 2012 10:09 am

Any Reasons I shouldn't switch 529 plan

Post by mlobur » Sat Jun 03, 2017 1:56 pm

Hi,
After doing research on this site, thanks, I have decided to transfer my daughter's 529 plan from Franklin Templeton Investments to Vanguard. I am a resident of New Jersey. I am pretty confident in this decision but does anyone have anything negative to add concerning the transfer?

thanks for your advice,
Matt

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Devil's Advocate
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Re: Any Reasons I shouldn't switch 529 plan

Post by Devil's Advocate » Sat Jun 03, 2017 5:40 pm

Does Franklin Templeton charge any fee for leaving? Other than that I wouldn't think there is a downside here. Hopefully someone more versed in New Jersey' 529 will chime in.

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livesoft
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Re: Any Reasons I shouldn't switch 529 plan

Post by livesoft » Sat Jun 03, 2017 6:39 pm

Even a fee to get out of Franklin is not a reason not to get out of Franklin.
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mlobur
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Re: Any Reasons I shouldn't switch 529 plan

Post by mlobur » Sat Jun 03, 2017 6:51 pm

thank you everyone for your feedback.

Matt

MikeG62
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Location: New Jersey

Re: Any Reasons I shouldn't switch 529 plan

Post by MikeG62 » Sun Jun 04, 2017 9:46 am

mlobur wrote:Hi,
After doing research on this site, thanks, I have decided to transfer my daughter's 529 plan from Franklin Templeton Investments to Vanguard. I am a resident of New Jersey. I am pretty confident in this decision but does anyone have anything negative to add concerning the transfer?

thanks for your advice,
Matt
Matt,

Why did you get into Franklin Templeton in the first place? Was it through the NJ Best program. If so, make sure you don't lose out on the $1,000 scholarship benefit to which you may be entitled (if you entered that plan early enough to qualify for it) if you exit FT.

FWIW, I started in NJ Best some 20 years ago. That account eventually migrated over to FT. I only invested the minimum to earn the $1,000 scholarship benefit (invested the vast majority of my 529 account with TRP).

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sometimesinvestor
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Re: Any Reasons I shouldn't switch 529 plan

Post by sometimesinvestor » Sun Jun 04, 2017 10:30 am

By any chance do you work in NY and pay at least some NY taxes? In that case the ny plan ,which uses Vanguard also may have some tax benefits to you

Rupert
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Re: Any Reasons I shouldn't switch 529 plan

Post by Rupert » Sun Jun 04, 2017 10:35 am

Don't know if NJ does this, but some states tax distributions from out-of-state 529s. My state does, for example. I still use an out-of-state plan but will roll funds into the in-state plan before taking distributions to avoid paying state income tax on those distributions.

mlobur
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Joined: Sun Jun 03, 2012 10:09 am

Re: Any Reasons I shouldn't switch 529 plan

Post by mlobur » Sun Jun 04, 2017 12:03 pm

hi all,

1. I Google Searched NJ taxing out of state 529 plan's distributions , they do not.

2. I opened the 529 plan with FT as it was recommended by a financial adviser I used. I texted him about the NJ Best program and am awaiting a response. I am going to say "No" as I don't ever recall that literature. I opened the 529 roughly 9 years ago.


Thank you all for your help.

Matt

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