New Jersey Better Educational Savings Trust Program - NJBEST
New Jersey 529 College Savings PlanWith the New Jersey NJBEST plan, your earnings will be both state and federal tax-deferred and as long as they are used for approved educational expenses, they will be federal and state tax-free. The maximum size of an NJBEST account is $305,000 for each beneficiary. An individual can contribute as much as $65,000 ($130,000 for a married couple) and not incur Federal gift tax, as long as that is total given during a five year period.
An account can be opened with as little as $25. One other advantage of an NJBEST account for New Jersey residents is that up to $25,000 is excluded from the student's financial need assessment. This could make the difference in eligibility for state scholarships and grants.
When the recipient attends a New Jersey college and either the beneficiary or contributor are New Jersey residents, the recipient may be eligible for an NJBEST Scholarship of up to $1,500. Check http://www.njbest.com/about/njb_scholarship.htm for more information on the NJBEST Scholarship.
You should also check with a financial advisor and tax advisor to see if a 529 investment is right for you.
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