Q:  Why are changes being made to the Path2College 529 Plan?

Path2College is committed to helping families reach their education savings goals. In doing our part, we continually seek opportunities to bring enhancements to the Plan, making Path2College a smart choice.

Q:  How will the changes impact account owners?

Effective May 21, 2021, account owners will enjoy lower fees, which means more of your hard-earned money will go towards your education savings. Certain account owners will be impacted by the simplified investment menu:

  • The Managed Enrollment Year Investment Portfolios will be renamed the Enrollment Year Investment Portfolios. Account balances invested in the Aggressive Managed Enrollment Year Investment Portfolios will automatically transfer to the Enrollment Year Investment Portfolios.
  • The Guaranteed Portfolio will be renamed the Principal Plus Interest Portfolio (its investment objective and strategy remain unchanged.)

Q:  What do account owners need to do?

  • If you anticipate needing to make an account transaction, plan accordingly, as no transactions can be processed starting Thursday, May 20, at 4 p.m. (ET) until 8 a.m. (ET) Monday, May 24.
  • Otherwise, the changes will be complete as of May 24 and no action is required on your part.

Q:  What if I have an automatic or recurring contribution to an Aggressive Managed Enrollment Year Investment Portfolio or a Managed Enrollment Year Investment Portfolio?

No action is required. Any automatic/recurring contribution from your personal checking or savings account will continue without interruption.

Q:  If I'm invested in an Aggressive Managed Enrollment Year Investment Portfolio, how will my investment change?

Your account balance in an Aggressive Managed Enrollment Year Investment Portfolio will automatically transfer to an Enrollment Year Investment Portfolio with the same enrollment year. For example, if you are currently in the 2028/2029 Aggressive Enrollment Portfolio, your account balance in this portfolio will automatically transfer to the 2028/2029 Enrollment Portfolio. Please review the Plan Description for the target asset allocations of the Enrollment Year Investment Portfolios. Beginning on Monday, May 24, if you wish to invest in a different enrollment portfolio, or any other Path2College investment portfolio, you may change your investment selection(s) if you have not already made two investment changes in 2021.

Q:  If I'm invested in an Aggressive Managed Enrollment Year Investment Portfolio and my desired target allocation differs from the target allocation in the Enrollment Year Investment Portfolio my account will be automatically transferred to, what do I need to do?

Beginning on Monday, May 24, if you wish to invest in a different enrollment portfolio, or any other Path2College investment portfolio, you may change your investment selection(s) if you have not already made two investment changes in 2021.

Q:  If I am impacted by the consolidation of the enrollment-based investment portfolios, can I change my investment portfolio?

Yes. The consolidation of the enrollment-based investment portfolios will not create a taxable event or count toward your two allowable investment changes per year. After the transition you may change your investment selection(s) if you have not already made two changes in 2021.