T. Rowe Price and John Hancock have teamed up with Alaska to offer the John Hancock Freedom 529 advisor-sold 529 savings program. It features enrollment-based and static portfolios utilizing mutual funds from T. Rowe Price and a number of other fund companies.
- Summary: T. Rowe Price and John Hancock have teamed up with Alaska to offer the John Hancock Freedom 529 advisor-sold 529 savings program. It features enrollment-based and static portfolios utilizing mutual funds from T. Rowe Price and a number of other fund companies.
- Program type: Savings
- Program manager: T. Rowe Price Associates, Inc.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Alaska's 529 plans for the same beneficiary reach $400,000.
- Minimum contributions: With lump-sum contributions, the minimum initial contribution is $1,000 per portfolio, and the minimum subsequent contribution is $50 per portfolio. With the automatic investment plan, the minimum contribution level is $50 per month.
- Age-based investment options: The Enrollment-Based Portfolios contain 6 multi-managed portfolios of underlying mutual funds, ranging from 100% equity to 20% equity. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. 5 portfolios shift to a more conservative investment allocation over time, eventually transferring to the College portfolio.
- Static investment options: Select among 3 multi-fund portfolios (Future Trends Portfolio, Equity Portfolio, and Fixed Income Portfolio), a money market portfolio, a short-term bond portfolio, 3 lifestyle portfolios (Lifestyle Growth 529 Portfolio, Lifestyle Balanced 529 Portfolio, Lifestyle Moderate 529 Portfolio) and 8 individual-fund portfolios. A dollar-cost averaging option provides for automatic monthly reallocations.
- Underlying investments: Mutual funds from Allianz, American Funds, Baillie Gifford, Declaration, Deutsche Asset Management, Dimensional Fund Advisors, Epoch, First Quadrant, Franklin Templeton Investments, GMO, Invesco, Jennison Associates, John Hancock, Oppenheimer Funds, PIMCO, QS Investors, Robeco, Standard Life Investments, Stone Harbor Investment Partners, T. Rowe Price, Wellington Management, Wells Capital Management, and Western Asset Management Company.
- Enrollment or application fee: None, but contributions may be subject to a sales charges depending on share class.
- Account maintenance fee: $25 charged in November of each year. Waived for account balances of $25,000 or more, for account balances of $75,000 or more when combined with other beneficiary accounts, or for accounts in an automatic contribution plan, or for Account Holders who elect to receive electronic statements and confirmations, or for Account Holders who invest through a financial intermediary that maintains the plan assets in an omnibus account.
- Program management fees: All portfolios except Short-Term Bond Portfolio, Fixed Income Portfolio and JH Money Market Portfolio:
0.30% (includes state fee of 0.05%) plus distribution fees of 0.25% (Class A) or 1.00% (Class C2).
Short-Term Bond Portfolio, Fixed Income Portfolio:
0.30% (includes state fee of 0.05%) plus distribution fees of 0.15% (Class A) or 0.90% (Class C2)
Money Market Portfolio:
0.30% (no state fee)
- Expenses of the underlying investments: Ranges from 0.51% to 0.94% (portfolio weighted average) in the age-based and static multi-fund portfolios, 0.67% to 0.91% in the individual-fund portfolios, and 0.19% in the money market portfolio.
- Total asset-based expense ratio: Class A: 0.96% - 1.49%
Class C2: 1.71% - 2.24%
Money Market: 0.44%
- Program match on contributions: None.
- State tax deduction or credit for contributions: Not applicable. Alaska does not have a personal income tax.
- Web site: Click here to visit
- Telephone: 1-866-222-7498