Ascensus is partnering with T. Rowe Price to enhance the education savings experience for 529 account holders.
Announced on National 529 Day, T. Rowe Price will remain as the investment and program manager for its four state-sponsored 529 plans, while Ascensus will provide recordkeeping and account servicing. Today, there are over 675,000 account owners saving for education through T. Rowe Price’s four 529 programs.
Ascensus currently serves as the largest recordkeeper and third-party administrator (TPA) of state-sponsored education savings programs in the United States, serving 6.5 million 529 plan savers and more than $200 billion in assets under administration (AUA).
Ascensus’ servicing is expected to produce several digital benefits to 529 account holders, including an improved online platform and mobile experience.
“Ascensus’ long track record of success and scale in 529 administration and customer service made them the clear choice to serve our 529 clients,” said Phil Korenman, head of the Individual Investors division at T. Rowe Price, in a statement. “This partnership complements and expands our servicing capabilities and it will deliver an enhanced experience for account owners.”
Specifically, holders will have access to a mobile app experience designed for 529 plans, a website and an app offering personalized features to simplify the customer experience, a gifting platform that allows family members and friends to contribute to accounts, and the ability to send electronic payments to over 800 educational institutions.
“Ascensus is honored to be chosen to partner with T. Rowe Price and support the education dreams of students and their families across the nation,” added Peg Creonte, president of Ascensus Government Savings. “T. Rowe Price is one of the most respected investment management firms in the world and a highly successful program manager for 529 plans. It’s a great fit for our world-class service and advanced technology, including mobile capabilities, 529 gifting, and payment integration with schools nationwide.”
529 savings accounts were first launched in 1996 to allow savers, along with their friends and families, to contribute money toward expenses on a tax-advantaged basis for public or private college, technical/vocational schools, apprenticeship programs, education loan repayment, and certain primary and secondary school expenses.
While the tool can provide valuable support in saving for education, a recent study by Edward Jones shows that 75% of Americans surveyed are unaware of the benefits a 529 account can provide.
However, of those who use a 529 account, 47% know it can be used for vocational and trade schools, 43% understand it can be utilized for room and board, 41% know they can use the funds to pay off student loan debt, and 19% are aware they can rollover funds to a Roth IRA [individual retirement account] under SECURE 2.0 legislation.
SEE ALSO:
- Savers Still Unaware of 529 Features
- T. Rowe Price Launches Social Security Tool Targeting Life Expectancy
- Ascensus to Buy Vanguard’s Individual 401(k), Multi SEP, and SIMPLE IRA Plans
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
