The total fees for a 529 account ranges from [0.43% to 0.46%] per year on amounts above $10,000 for all Wealthfront 529 Plan clients ($25,000 for all Wealthfront 529 Plan clients who are Nevada residents). That makes the Wealthfront 529 Plan the lowest cost 529 plan that is managed for clients.*
The total cost is composed of the following fees and expenses:
- Wealthfront Advisory Fee: Wealthfront charges an 0.25% annualized fee for investment advisory services provided in connection with the Wealthfront 529 College Savings Plan. Currently, Wealthfront waives its investment advisory fees for the first $10,000 of assets in all Wealthfront investment advisory account(s), including 529 accounts. For Nevada residents who open a 529 account, Wealthfront waives its investment advisory fees for an additional $15,000 of assets ($25,000 of assets in total) in all Wealthfront investment advisory accounts.
- Program Administration Fee: To cover the costs of administering and managing the plan, the Board of Trustees of the College Savings Plans of Nevada and Ascensus Broker Dealer Services, Inc. receive annualized fees equal to 0.01% and 0.05%, respectively, on assets in the plan.
- Underlying ETF Expenses: Each account owner indirectly bears the account owner’s pro-rata share of the operating expenses of the underlying ETFs within the municipal securities that make up each account owner’s portfolio. These annualized expenses range from 0.12% to 0.15%.
For more information about the Wealthfront 529 College Savings Plan (the “Plan”), download the Plan Description and Participation Agreement or request one by calling
844-995-8437 or emailing email@example.com. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description and Participation Agreement; please read and consider it carefully before investing. An investment in the Plan is not insured or guaranteed by the FDIC or any federal or state government or agency. You could lose all or portion of your investment. Wealthfront Brokerage Corporation serves as the distributor and the underwriter of the Plan.
Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program
The Plan is administered by the Board of Trustees of the College Savings Plans of Nevada (the “Board”), chaired by the Nevada State Treasurer. Ascensus Broker Dealer Services, Inc. (“ABD”) serves as the Program Manager.
Earnings on nonqualified withdrawals are subject to federal income tax and may be subject to a 10 percent federal tax penalty, as well as state and local income taxes. The availability of tax and other benefits may be contingent on meeting other requirements.
The information contained is provided for general informational purposes, and should not be construed as investment advice. Nothing should be construed as tax advice, solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront clients. This article is not intended as tax advice, and Wealthfront does not represent in any manner that the tax consequences described here will be obtained or will result in any particular tax consequence.