529 plan fees vary based on the state, the plan provider, and your investment choices. Merrill offers access to state-sponsored plans, such as the NextGen 529 (offered by Maine). Here are the key types of fees:
These are usually $10–$25 annually but often waived if you use e-statements or maintain a certain balance.
These range from 0.10% to 0.85% annually and depend on fund type and whether the plan is direct-sold or advisor-sold. Direct plans through Merrill tend to be cheaper.
Some funds charge commission fees, but most 529 plans through Merrill are no-load, especially with direct access.
Charged by the state, typically 0.05%–0.20% annually. This fee is part of the overall expense ratio.
Mutual funds in your portfolio carry operating expenses included in the total expense ratio. Opting for index funds can help reduce these costs.
Yes—529 plans still offer excellent long-term value for education savings despite the fees. The tax benefits and potential rewards, especially for Bank of America customers, often outweigh the costs.
Still, it's smart to compare with your state's plan, especially if it offers tax deductions for contributions.
While no investment is truly fee-free, Bank of America's 529 plan via Merrill offers a strong combination of value, flexibility, and accessibility. By making informed choices, you can keep costs low and give your child a solid financial foundation for their education.