Path2College 529 Plan

Fees & Expenses

The information below describes the fees and expenses that you would pay if you contribute to a particular investment portfolio in the Path2College 529 Plan. These fees are indirectly paid out of the assets of your account. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account.


Enrollment Year Investment Portfolios
(Formerly Managed Enrollment Year Investment Portfolios)
Fees and Expenses
Investment Portfolio Plan Manager Fee(1)(2) Board Manager Fee(1)(3) Estimated Expenses of an Investment Portfolio's Underlying Investments(4) Total Annual Asset-Based Fees(5)
2038/2039 Enrollment 0.04% 0.00% 0.06% 0.10%
2036/2037 Enrollment 0.04% 0.00% 0.06% 0.10%
2034/2035 Enrollment 0.04% 0.00% 0.06% 0.10%
2032/2033 Enrollment 0.04% 0.00% 0.06% 0.10%
2030/2031 Enrollment 0.04% 0.00% 0.06% 0.10%
2028/2029 Enrollment 0.04% 0.00% 0.06% 0.10%
2026/2027 Enrollment 0.04% 0.00% 0.05% 0.09%
2024/2025 Enrollment 0.04% 0.00% 0.05% 0.09%
2022/2023 Enrollment 0.04% 0.00% 0.03% 0.07%
In School Enrollment 0.04% 0.00% 0.02% 0.06%

 

Principal Plus Interest Investment Portfolio
(Formerly Guaranteed Investment Portfolio)
Fees and Expenses
Investment Portfolio Plan Manager Fee(1)(2) Board Administrative Fee(1)(2) Estimated Expenses of an Investment Portfolio's Underlying Investments(4) Total Annual Asset-Based Fees(5)
Principal Plus Interest Portfolio(6) N/A N/A N/A N/A

 

Static Investment Portfolios
Fees and Expenses
Investment Portfolio Plan Manager Fee(1)(2) Board Administrative Fee(1)(3) Estimated Expenses of an Investment Portfolio's Underlying Investments(4) Total Annual Asset-Based Fees(5)
Conservative Allocation Portfolio 0.04% 0.00% 0.04% 0.08%
Balanced Allocation Portfolio 0.04% 0.00% 0.07% 0.11%
High Equity Allocation Portfolio 0.04% 0.00% 0.08% 0.12%
100% Fixed Income Portfolio 0.04% 0.00% 0.05% 0.09%
U.S. Equity Index Portfolio 0.04% 0.00% 0.05% 0.09%

 

(1) Although the Plan Manager Fee and the Board Administrative Fee are deducted from an Investment Portfolio, not from your Account, each Account in the Investment Portfolio indirectly bears its pro rata share of the Plan Manager Fee and the Board Administrative Fee as these fees reduce the Investment Portfolio’s return.

(2) Each Investment Portfolio (with the exception of the Principal Plus Interest Portfolio) pays the Plan Manager a fee at an annual rate of 0.04% of the average daily net assets of the Investment Portfolio. This 0.04% fee applies on total assets in the Plan up to $5.0 billion. The Plan Manager fee will be reduced to 0.03% effective on the first day of the month following the date the Plan assets equal or exceed $5.0 billion. The Plan Manager fee will be reduced to 0.02% effective on the first day of the month following the date the Plan assets equal or exceed $6.0 billion. The Plan Manager fee may be further reduced if and when total assets in the Plan reach certain levels.

(3) For its services in administering the Plan, each Investment Portfolio (with the exception of the Principal Plus Interest Portfolio) may pay to the Board an Administrative Fee at an annual rate of 0.06% of the average daily net assets of the Investment Portfolio. Effective January 1, 2021, the Board has elected to waive its fee.

(4) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Portfolio invests. The amounts are calculated using the expense ratio reported in each mutual fund’s most recent prospectus available prior to the date of this Plan Description weighted according to the Investment Portfolio’s allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Portfolio’s assets, each Investment Portfolio (other than the Principal Plus Interest Portfolio, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests as these expenses reduce such mutual fund’s return.

(5) These figures represent the estimated annual expense ratios of the mutual funds in which the Investment Portfolios invest plus the fees paid to the Plan Manager and to the Board.

(6) The Principal Plus Interest Portfolio does not pay a fee to the Plan Manager or to the Board. TIAA-CREF Life Insurance Company ("TIAA-CREF Life"), the issuer of the funding agreement in which this Investment Portfolio invests and an affiliate of TFI, makes payments to TFI. TIAA-CREF Life also pays the Board a fee, equal to 0.06% of the average daily net assets held by the Principal Plus Interest Portfolio. These payments, along with many other factors, are considered by the issuer when determining the interest rate(s) credited under the funding agreement.

The example in the following table is intended to help you compare the cost of investing in the different Investment Portfolios over various periods of time. This hypothetical example assumes that:

  • You invest $10,000 in an Account for the time periods shown below.
  • Your investment has a 5% compounded return each year.
  • You withdraw the assets from your Account at the end of the specified periods for qualified higher education expenses.
  • Total annual asset-based fees remain the same as shown in the Fee Table above.
  • The example does not consider the impact of any potential state or federal taxes on the redemption.

Although your actual costs may be higher or lower, based on the above assumptions your costs would be:

Investment Cost Example
Investment Portfolio Approximate Cost of $10,000 Investment
  1 Year 3 Years 5 Years 10 Years
Enrollment Year Investment Portfolios
(Formerly Managed Enrollment Year Investment Portfolios)
2038/2039 Enrollment Portfolio $10 $32 $57 $128
2036/2037 Enrollment Portfolio $10 $32 $57 $128
2034/2035 Enrollment Portfolio $10 $32 $57 $128
2032/2033 Enrollment Portfolio $10 $32 $57 $128
2030/2031 Enrollment Portfolio $10 $32 $57 $128
2028/2029 Enrollment Portfolio $10 $32 $57 $128
2026/2027 Enrollment Portfolio $9 $29 $51 $116
2024/2025 Enrollment Portfolio $9 $29 $51 $116
2022/2023 Enrollment Portfolio $7 $23 $40 $90
In School Enrollment Portfolio $6 $19 $34 $77
Principal Plus Interest Investment Portfolio
(Formerly Guaranteed Investment Portfolio)
Principal Plus Interest Investment Portfolio N/A N/A N/A N/A
Static Investment Portfolios
Conservative Allocation Portfolio $8 $26 $45 $103
Balanced Allocation Portfolio $11 $36 $62 $141
High Equity Allocation Portfolio $12 $39 $68 $154
100% Fixed Income Portfolio $9 $29 $51 $116
U.S. Equity Index Portfolio $9 $29 $51 $116

316284