Fees

Yes, 529 plans often have administrative fees, but the type and amount vary depending on the specific plan and state. Here’s a breakdown:

1.  Account Maintenance Fees: Some 529 plans charge an annual account maintenance fee, typically ranging from $10 to $50. These may be waived if you meet certain conditions, like maintaining a minimum balance (e.g., $25,000), enrolling in automatic contributions, or being a resident of the state sponsoring the plan.

2.  Program Management Fees: Most plans charge a management fee for overseeing the plan, often a percentage of assets (e.g., 0.10% to 0.50% annually). This fee is typically embedded in the plan’s expense ratio.

3.  Investment Fees: If the 529 plan invests in mutual funds or similar vehicles, you’ll encounter expense ratios for the underlying investments, ranging from 0.05% to 1% or more annually, depending on whether the investments are actively or passively managed.

4.  Sales Charges or Load Fees: Some advisor-sold 529 plans charge front-end or back-end sales loads (e.g., 3% to 5.75%) when you buy or sell certain investment options. Direct-sold plans, purchased without a financial advisor, typically avoid these fees.

5.  Other Fees: Some plans may charge additional fees for services like paper statements, rollovers to another 529 plan, or changing beneficiaries, though these are less common.

State-Specific Variations: Fee structures differ by state and plan type (direct-sold vs. advisor-sold). For example, low-cost plans like Utah’s my529 or New York’s 529 College Savings Program often have minimal fees (e.g., 0.10%–0.20% total annual fees), while advisor-sold plans in some states may have higher costs due to sales charges.

How to Check:

•  Review the 529 plan’s disclosure documents or website for a detailed fee schedule.

•  Compare fees across plans, as they can significantly impact long-term savings.

•  Check if your state offers fee waivers or reduced costs for in-state residents.

To get precise fee details for a specific 529 plan, let me know the state or plan name, and I can look into it further or guide you to the relevant resources.