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.
Investment fees will be reduced from 0.16% (currently) to 0.15%.
More information about MOST 529 can be found at MissouriMost.org.