J.P. Morgan Wealth Management Eliminates Upfront Fee on 529 Plans

Rhea-AI Summary

J.P. Morgan Wealth Management has announced a significant change in its 529 plans, eliminating the upfront sales charge for advisor-sold investment plans. This decision aims to make education investing more accessible as college tuition costs rise 6.3% annually. By removing the sales charge, which can be as high as 5.75%, more client funds will directly contribute to education goals. Other applicable fees will still remain. J.P. Morgan Wealth Management oversees approximately $670 billion in assets and has around 4,000 advisors available to assist clients.

Positive

• Elimination of the 5.75% sales charge for advisor-sold 529 plans, enhancing investment accessibility.
• Focus on education investing aligns with rising college tuition costs, making it more attractive for families.

Negative

• None.

Industry-leading commitment makes education investing more accessible

NEW YORK--(BUSINESS WIRE)-- J.P. Morgan Wealth Management announced today that it will offer its advisor-sold 529 plans without the industry standard upfront fee (“front-end load or sales charge”). With this change, more of what the client invests goes towards their education goals.

College tuition costs are rising 6.3% every year, according to J.P. Morgan’s College Planning Essentials report. 529 plans provide a tax-advantaged way for families to invest for the future costs of higher education. Some also can help cover costs of K-12 tuition, vocational school and registered apprenticeships. There are no income limits on contributions or age restrictions on beneficiaries, unlike other types of accounts often used for education.

J.P. Morgan Wealth Management advisors will offer select 529 plans without the sales charge, which for advisor-sold investments can be as high as 5.75%. Other fees and expenses will continue to apply.

To learn more about J.P. Morgan Wealth Management’s education planning offerings, visit https://www.chase.com/personal/investments/education/529

To read about common misconceptions about 529 plans and how they can help families invest for college, visit The Know, J.P. Morgan Wealth Management’s investing education center: https://www.chase.com/personal/investments/learning-and-insights/article/529-all-the-latest-insights

About J.P. Morgan Wealth Management

J.P. Morgan Wealth Management is the U.S. wealth management business of JPMorgan Chase & Co., a leading global financial services firm with assets of $3.7 trillion and operations worldwide. J.P. Morgan Wealth Management has ~4,000 advisors and ~$670 billion of assets under supervision. Customers can choose how and where they want to invest. They can do it digitally, remotely, or in person by meeting with a J.P. Morgan Advisor in one of our 3,500 Chase branches throughout the U.S., or in one of our 21 offices. For more information, go to www.jpmorganwealthmanagement.com and follow @JPMWealth on Twitter.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

© 2021 JPMorgan Chase & Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210913005197/en/

Media contact

Veronica Navarro

Veronica.navarro@jpmorgan.com

Source: JPMorgan Chase & Co.

FAQ

What is J.P. Morgan's recent announcement about 529 plans?

J.P. Morgan Wealth Management announced it will offer advisor-sold 529 plans without the upfront sales charge.

How much does college tuition cost increase annually according to J.P. Morgan?

College tuition costs are rising at a rate of 6.3% every year.

What are the benefits of J.P. Morgan’s 529 plans?

The 529 plans provide a tax-advantaged way to invest for education without income limits or age restrictions.

What fees apply to J.P. Morgan's advisor-sold 529 plans?

While the upfront sales charge is eliminated, other fees and expenses will continue to apply.

What is the current asset management of J.P. Morgan Wealth Management?

J.P. Morgan Wealth Management has approximately $670 billion in assets under supervision.