PRESS RELEASE
Treasurer Fitzpatrick Announces Fee Reduction for MOST 529 Plan Participants
Jefferson City, MO –Missouri State Treasurer Scott Fitzpatrick
today announced that MOST 529 account owners will see an investment fee
reduction beginning Friday, July 1. This structured reduction was negotiated in
2020 as part of the overall contract extension with program manager Ascensus. “Because fee reductions are
typically tied to asset growth, I made it a priority to ensure plan
participants receive fee reductions, regardless of market performance. It is
gratifying to see this pay off as we face this period of market volatility,”
Treasurer Fitzpatrick said. “MOST 529 is a valuable tool for Missourians who
are paying for education and saving for education. Making this program as cost
effective and flexible for Missourians remains a top priority.” In 2020, the MOST 529 Board of
Directors voted to approve a contract amendment with program manager Ascensus.
The contract amendment extended the contract period while guaranteeing program
management fee reductions—taking the fees to 16bp immediately, and 14bp over
five years, a reduction of over 26%. This reduction means over $8 million in
savings for plan participants. The amendment also guaranteed
that any subsequent decreases in fees on specific investment options over time
will be passed on to plan participants instead of being retained as part of the
program management fee. MOST,
Missouri’s 529 Education Plan, is a tax-advantaged savings plan for education
expenses. Money in MOST accounts can be used to pay for K-12 tuition, and
trade, college, and graduate school tuition and expenses. Money in MOST 529
accounts can also be used to repay up to $10,000 of student loans.
Contributions are eligible for state tax deductions, which can save families
more than $800 a year, and assets in MOST 529 accounts grow tax free. Plan management fees will be reduced
from 0.16% (currently) to 0.15%. More information about MOST 529
can be found at MissouriMost.org. ### Follow the Treasurer’s Office on Twitter,
Facebook, and Instagram @motreasurer.