Anyone use the NJBest 529?

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Topic Author
jb3
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Joined: Sun Jan 16, 2011 10:27 pm

Anyone use the NJBest 529?

Post by jb3 »

I'm in NJ and considering putting 5k in for each of my kids this year to get the 10,000 state tax deduction.

What fund did you use?

The fees seem high. Although my kids are teens so it might not make much of an impact before we use the funds.

Can I put the 10k in for a day and then transfer it to my Utah 529 and still get the NJ tax deduction?

Investment options:
https://www.njbest.com/njbest/products/ ... nt-options

Fees:
https://www.franklintempleton.com/forms ... 29NJ-HNDBK
mary1492
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Re: Anyone use the NJBest 529?

Post by mary1492 »

xyzzy
Last edited by mary1492 on Fri Sep 30, 2022 12:36 pm, edited 1 time in total.
aum
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Re: Anyone use the NJBest 529?

Post by aum »

I am also in NJ and thinking of doing the same. I agree...Not many choices and higher expenses. Only option I would choose is following:
S&P 500 Index 529 Portfolio
Portfolio Number: 026 | CUSIP: 645769795
Total Annual Operating Expenses: 0.14%

My existing plan is with NY state. I've three kids and planning to fund 10K between them at NJBEST. One is already in college and other two are starting this fall. My plan is to fund 10K this year and withdraw that 10K next year to pay for their college expenses and again deposit 10K. I'll keep doing this to get 10K deduction until kids graduate and then withdraw 10K to pay their student loan after they graduate.
aum
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Re: Anyone use the NJBest 529?

Post by aum »

As per this https://www.nj.com/news/2022/01/njs-529 ... ntive.html it is 20K deduction if married filing jointly. Is this really true or a typo? If true, I will fund 10K/kid for two kids to get the maximum deductible.

"Now, New Jersey taxpayers with gross income of $200,000 or less can qualify for a state income tax deduction of up to $10,000 per taxpayer for contributions to the plan. That’s a deduction of up to $20,000 for a married couple filing a joint tax return".
mary1492
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Re: Anyone use the NJBest 529?

Post by mary1492 »

xyzzy
Last edited by mary1492 on Fri Sep 30, 2022 12:36 pm, edited 1 time in total.
Topic Author
jb3
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Re: Anyone use the NJBest 529?

Post by jb3 »

I called today to ask about whether I can pull funds out after a day and still get the state tax deduction and the rep I got was utterly useless. Maybe someone else will have better luck.
mary1492
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Re: Anyone use the NJBest 529?

Post by mary1492 »

xyzzy
Last edited by mary1492 on Fri Sep 30, 2022 12:36 pm, edited 1 time in total.
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Re: Anyone use the NJBest 529?

Post by LadyGeek »

This thread is now in the Personal Investments forum (portfolio help).
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aum
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Re: Anyone use the NJBest 529?

Post by aum »

jb3 wrote: Mon Jan 31, 2022 4:48 pm I called today to ask about whether I can pull funds out after a day and still get the state tax deduction and the rep I got was utterly useless. Maybe someone else will have better luck.
Same here. I called and person on line was just waste of time. He had no clue if its 10K for single/mfj. He deferred me to call Hesaa where you dont even have an option to talk to someone about NJ 529 plan. I guess, as time goes more details will come out. I'll just open an account with $25 and wait til end of the year to fund remaining 10K once all the details are publicly available.
Topic Author
jb3
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Joined: Sun Jan 16, 2011 10:27 pm

Re: Anyone use the NJBest 529?

Post by jb3 »

I sent them an email...will report back.
Topic Author
jb3
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Joined: Sun Jan 16, 2011 10:27 pm

Re: Anyone use the NJBest 529?

Post by jb3 »

Here's how they answered, I cannot take responsibility for it's accuracy:

1. Regarding the NJ tax deduction, is it is a 20K per year deduction if married filing jointly?
A: If filing jointly, total gross income must be less than $200,000 in order to qualify for the NJ state tax deduction of up to $10,000.

2.How long must the money be in the NJBest account in order to get the tax deduction?
A: There’s no minimum holding period in order to take a deduction.
mary1492
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Re: Anyone use the NJBest 529?

Post by mary1492 »

xyzzy
Last edited by mary1492 on Fri Sep 30, 2022 12:35 pm, edited 1 time in total.
informal guide
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Re: Anyone use the NJBest 529?

Post by informal guide »

It is my understanding that most 529 plans, like Vanguard and banks, have a "collection period," when funds (except for Fed wire transfers) cannot be withdrawn - -typically 7-14 calendar days. This protects these organizations against bounced or other dishonored checks.

According to both Savingforollege.com and the College Savings Plan Network, usually reliable sources, the NJ income tax deduction per year for either single or joint filers is $10,000, subject to income requirements of </=$200,000.

Some states (e.g., New York) have specific provisions in state laws or regulations requiring recapture of tax deductions when there is either a nonqualified withdrawal or a rollover of a plan's assets to another 529 plans. You may want to check and see whether this applies in NJ. The State income tax authorities, rather than the Plan's contacts, are usually the arbiters of these decisions.
Topic Author
jb3
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Joined: Sun Jan 16, 2011 10:27 pm

Re: Anyone use the NJBest 529?

Post by jb3 »

Curious if anyone has confirmed whether NJ allows you move the money to another 529 and still get the tax deduction?
aum
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Re: Anyone use the NJBest 529?

Post by aum »

jb3 wrote: Mon Apr 18, 2022 11:12 pm Curious if anyone has confirmed whether NJ allows you move the money to another 529 and still get the tax deduction?
Any updates? I am planning to do the same. All tunds at NJBest have higher fees except their bond fund so would like to rollover to ny529 plan asap
Topic Author
jb3
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Joined: Sun Jan 16, 2011 10:27 pm

Re: Anyone use the NJBest 529?

Post by jb3 »

This is not tax advice, but it worked for me. I had money in my NJ 529 for a few weeks then moved it to my Utah 529. I printed out the docs showing I had it in the NJ 529 and included them in my NJ tax returns.
aum
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Re: Anyone use the NJBest 529?

Post by aum »

Great! Thanks for the reply.
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