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Scholar's Edge

4 / 5

Our rating

Good NM resident benefits

NM resident benefits

New Mexico's Scholar's Edge is an advisor-sold 529 savings program offered and sponsored by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, as the program manager, is responsible for the day-today operations of the plan. Principal Global Investors, LLC, as the investment advisor to the plan, provides investment management services to the Plan. Principal Funds Distributor, Inc. serves as the distributor of the Plan. Scholar's Edge features enrollment-based, target risk and individual portfolios that are multi-asset and multi-manager strategies. To find a financial advisor in your area, use the Directory of Financial Professionals.

Scholar's EdgeHonors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2001, but changed substantially in 2019

State agency

Education Trust Board of New Mexico

Tax deduction

For single filers: No limit

For joint filers: No limit

Program manager

Ascensus College Savings Recordkeeping Services, LLC

Program distributor

Principal Funds Distributor, Inc

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens at least 18 years old with a SSI/TIN number, emancipated minors, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in New Mexico's 529 plans for the same beneficiary reach $500,000.

Minimum contributions:

No minimum.,

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

Investment Options

Investors in Scholar's Edge can select from the following investment options. Click on a portfolio name for more information.

The Year of Enrollment Portfolios contain 11 portfolios of underlying mutual funds, ranging from 100% equity to 0% equity. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. 10 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Scholar's Edge Today Portfolio.
PortfolioE.R. % Equity1yr performance
2038-2039 Portfolio0.91%90%5.58%
2036-2037 Portfolio0.91%82%5.69%
2034-2035 Portfolio0.89%74%5.82%
2032-2033 Portfolio0.87%61.5%5.6%
2030-2031 Portfolio0.86%46.75%5.49%
2028-2029 Portfolio0.84%31.4%5.42%
2026-2027 Portfolio0.8%16.6%5.15%
2024-2025 Portfolio0.77%10.75%4.98%
Principal Today Portfolio0.77%10%4.91%
2040-2041 Portfolio0.91%97.01%5.61%
2042-2043 Portfolio0.92%100%5.53%

Age-based/Enrollment Year investment options:

The Year of Enrollment Portfolios contain 11 portfolios of underlying mutual funds, ranging from 100% equity to 0% equity. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. 10 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Scholar's Edge Today Portfolio.

Static investment options:

Select among 4 Target-Risk portfolios with varying risk tolerances, 15 individual-fund portfolios, and the Capital Preservation Portfolio.

Underlying investments:

Principal, BlackRock, Vanguard, JPMorgan, and New York Life, Subadvisor MacKay Shields LLC, iShares, SPDR, DFA.

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$20 annually for accounts with less than $25,000, waived if either the designated beneficiary or account owner is a New Mexico resident and for accounts with recurring contributions of at least $25 per month or $75 per quarter.

Program management fees:

0.20% management fee (includes 0.08% fee to the state), plus distribution/servicing fees of 0.25% for Class A, 1.00% for Class C, none for Class R.

Expenses of the underlying investments:

Ranges from 0.24% to 0.39% (portfolio weighted average) in the age-based and static portfolios, from 0.03% to 0.81% in the individual-fund portfolios. None for Capital Preservation Portfolio.

Total asset-based expense ratio:

Class A: 0.53% - 1.34%
Class C: 1.28% - 2.09%
Class R: 0.28% - 1.09%

Broker loads and commissions:

Breakpoint pricing:

Does breakpoint pricing include non-529 assets under rights of accumulation policies

Taxes and other Benefits

Tax deduction for single filers:

No limit

Tax deduction for joint filers:

No limit

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to a New Mexico 529 plan are fully deductible in computing New Mexico taxable income.

Calculate your New Mexico 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a New Mexico 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

In certain circumstances, the amounts deducted may be recaptured in subsequent years. For example, amounts previously deducted for New Mexico income tax purposes may be recaptured if they are distributed from the Plan to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico or to another Qualified Tuition Program not offered by the State of New Mexico.

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from New Mexico and non-New Mexico 529 plans are exempt.

State tax treatment of rollovers:

Rollovers from a non-New Mexico-approved Section 529 college savings plan to the NM 529 plans are deductible for NM state tax purposes. Outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

Contact

Website:

https://scholarsedge529.com/

Telephone:

1-866-529-7283

Telephone for broker use:

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