What is an F 2 share?

How does CDSC work?

A contingent deferred sales charge (CDSC) is a fee, sales charge or load, which mutual fund investors pay when selling Class-B fund shares within a specified number of years from the original purchase date. … The financial industry usually expresses a CDSC as a percentage of the dollar amount invested into a mutual fund.

What are 529 shares?

Class 529-E Shares

  • Available only through employer-sponsored 529 plans.
  • No Sales Charge. Class 529-E shares, which can be offered in eligible employer-sponsored college savings plans, do not have an up-front or contingent deferred sales charge.
  • Annual Expenses. …
  • Maximum Investments. …
  • Fund Purchase Restrictions.

What is the difference between 529 A and 529 C?

Investors who purchase Class A shares typically pay an upfront sales charge and lower annual fees compared to other 529 plan share classes. … Class C shares do not have a front-end sales charge, but come with higher annual fees, often making them a better choice for investors with a shorter time horizon.

Does CDSC apply to reinvested dividends?

Increases in the value of your shares or shares acquired through reinvestment of dividends or distributions are not subject to a CDSC. The amount of any CDSC will be paid to and retained by the Distributor.

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What is CDSC annuity?

If you withdraw money from an annuity contract or surrender the contract within a certain period of time after investing, the insurance company may assess a contingent deferred sales charge (CDSC). Usually, the CDSC is a percentage of the purchase payment withdrawn, and it declines gradually over the CDSC period.

What are typical 529 fees?

The average upfront fee for class A 529 plans sold by brokers is as much as 5.75%, according to Paul Curley, director of college savings research at consulting firm Strategic Insight. For those accounts, the average annual fee is about 1% of the account balance.

What can I spend 529 money on?

Money from a 529 account can be used for major post-secondary education costs such as: Required tuition, fees, books, supplies and equipment. Certain room and board expenses, which may include food purchased directly through the college or university (for the stipulations of off-campus living — see below)

How much can a parent contribute to a 529 per year?

Annual 529 plan contribution limits

529 plans do not have annual contribution limits. However, contributions to a 529 plan are considered completed gifts for federal tax purposes, and in 2019 up to $15,000 per donor, per beneficiary qualifies for the annual gift tax exclusion.

Do 529 plans have fees?

With almost any 529 plan, the investor pays annual mutual fund fees. … If you instead invest in a 529 plan with a 0.10% expense ratio you would only pay $100 fees that year. And remember, a 529 plan’s annual expense ratio is based on a percentage of assets in the account.

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Who is in charge of a 529 plan?

Generally, the same person who contributed the money controls the Section 529 account. This doesn’t have to be the case, however. Someone else, such as a grandparent, could make a donation but name the child’s parent as the account owner, or a parent could establish the account and allow others to contribute to it.