Fidelity Cuts Fees on 529 College Savings Plans

529 Pricing Change

You can now save for college with lower fees, thanks to recent changes to the state-sponsored 529 college savings plans Fidelity offers directly to investors. The fees have been cut by 33% to 50%, making Fidelity-managed 529s among the least expensive plans in the industry.

“In these challenging times, we understand that families need all the help they can get and are looking for greater value for their investments,” says Joe Ciccariello, vice president of college planning at Fidelity Personal and Workplace Investing. “These fee cuts mean families with Fidelity-managed 529 accounts will now have their money working harder for them.”

Fidelity has cut program management fees in half (15 basis points) for its index portfolios and by one-third (10 basis points) across the plan’s active portfolios in the plans offered directly to investors.

  • Total index portfolio fees now range from 0.25% to 0.35% of plan assets.
  • Total actively managed portfolio fees now range from 0.57% to 1.04% of plan assets.

New investing options

In addition to lower fees, Fidelity 529 savers will now benefit from a more diverse fund lineup. Over the next 12 months, the age-based funds available in the Fidelity 529-plans will begin investing in the Fidelity Emerging Markets fund.  Also, the international equity exposure in the age-based portfolios will increase from a current range of 0%-20% to 30% of the overall equity allocation.

Of course, the main benefit of a 529 remains the same: Any earnings and withdrawals are federal and state income tax free when used to pay for qualified college expenses. 

To take advantage of Fidelity’s free 529 planning and guidance resources, visit Fidelity.com/planning/college.


The UNIQUE College Investing Plan, U.Fund® College Investing Plan, Delaware College Investment Plan, Fidelity Arizona College Savings Plan, and ScholarShare College Savings Plan are offered by the state of New Hampshire, MEFA, the state of Delaware, the Arizona Commission for Postsecondary Education, and the ScholarShare Investment Board, an agency of the state of California, respectively, and managed by Fidelity Investments. 

Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation 

If you or the designated beneficiary is not a resident of the state sponsoring the 529 college savings plan, you may want to consider, before investing, whether your state or the designated beneficiary's home state offers its residents a plan with alternate state tax advantages or other benefits. 

Please carefully consider the Plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, call or write to Fidelity for a free Fact Kit, or view one online. Read it carefully before you invest or send money.

541952.1

 Feedback

Share your thoughts about STAGESSM Online.

 Related Links