Fidelity manages the UNIQUE College Investing Plan (New Hampshire) and the U.Fund College Investing Plan (Massachusetts) — two of the most widely used direct-sold 529 plans in the country, available to residents of any state. The index investment tracks carry expense ratios as low as 0.11%, making them among the lowest-cost 529 options nationally. Here is a complete review of the Fidelity 529 plan in 2026.
Fidelity 529 Plans at a Glance
| Feature | UNIQUE (NH) | U.Fund (MA) |
|---|---|---|
| Open to | All US residents | All US residents |
| Account fee | $0 | $0 |
| Index track expenses | ~0.11%–0.18% | ~0.11%–0.18% |
| Active track expenses | 0.55%–0.85% | 0.55%–0.85% |
| Minimum contribution | $0 (initial), $50 (recurring) | $0 |
| Maximum account balance | $553,098 (NH, 2026 limit) | ~$500,000 |
| In-state tax deduction | NH: none (no income tax) | MA: $1,000/year single, $2,000 married |
Investment Options
Fidelity 529 plans offer three main investment approaches:
1. Age-Based Portfolios (Most Common)
Automatically shifts from aggressive (equity-heavy) to conservative (bond/money market) as the beneficiary approaches college age:
| Track | Young child (0–6) | Middle (7–12) | Near college (13–18) |
|---|---|---|---|
| Index (lowest cost) | ~95% stocks | ~70% stocks | ~30% stocks |
| Blended | ~80% stocks | ~65% stocks | ~35% stocks |
| Active (highest cost) | ~90% stocks | ~70% stocks | ~30% stocks |
The Index track uses Fidelity’s own index funds (equivalent to VTI, VXUS, AGG in structure) and is the lowest-cost option.
2. Static Allocation Portfolios
Fixed stock/bond splits that do not adjust automatically:
- 100% Equity Index Portfolio (~0.11% ER)
- 70% Equity / 30% Bond Portfolio (~0.12% ER)
- 50/50 Portfolio (~0.14% ER)
- 100% Bond Portfolio (~0.16% ER)
- Money Market Portfolio (~0.42% ER)
3. Individual Fund Portfolios
Invest in specific Fidelity funds:
- Fidelity 500 Index Portfolio (mirrors FXAIX)
- Fidelity Total Market Index Portfolio (mirrors FSKAX)
- Fidelity International Index Portfolio (mirrors FZILX equivalent)
- Fidelity US Bond Index Portfolio
Individual fund portfolios give more control but require manual rebalancing.
529 Contribution Limits and Tax Rules
| Rule | 2026 Amount |
|---|---|
| Annual gift tax exclusion per beneficiary | $18,000 |
| 5-year front-loading maximum (single) | $90,000 |
| 5-year front-loading maximum (married/joint) | $180,000 |
| Maximum account balance (NH UNIQUE) | $553,098 |
| Federal tax deduction | None (no federal deduction for 529) |
State tax deductions: Contributions to any state’s 529 plan (not just your home state’s plan) may qualify for a state income tax deduction in states that offer one. New Hampshire has no state income tax, so the UNIQUE plan offers no NH deduction — but residents of many other states can still use the UNIQUE plan and claim their own state’s deduction if the state offers a deduction for contributions to any plan. Check your state’s rules before choosing.
Tax Benefits of the Fidelity 529
- Earnings grow tax-free — investment gains inside a 529 are never taxed at the federal level if used for qualified education expenses
- Withdrawals are tax-free for qualified expenses: tuition, fees, room and board, books, computers and internet access required for school, special needs services
- Roth IRA rollover (2024+ rule): Unused 529 funds can be rolled to a Roth IRA for the beneficiary (lifetime limit: $35,000; subject to annual Roth IRA contribution limits and 15-year account holding requirement)
Qualified Education Expenses
529 funds can be used tax-free for:
- College tuition and fees (US and many international schools)
- Room and board (up to the school’s cost of attendance allowance)
- Books, supplies, and required equipment
- Computer, software, and internet access required for enrollment
- K-12 tuition up to $10,000/year per beneficiary
- Apprenticeship programmes (DOL-registered)
- Student loan repayment up to $10,000 lifetime per beneficiary
Unqualified withdrawals are subject to income tax on earnings plus a 10% federal penalty on earnings. The principal (your contributions) can always be withdrawn tax-free.
How to Open a Fidelity 529
- Go to Fidelity.com > “Savings & Retirement” > “529 College Savings”
- Select UNIQUE (NH) or U.Fund (MA)
- Provide information for the account owner (you) and the beneficiary (the student)
- Choose an investment track (Age-Based Index recommended for most families)
- Fund with any amount; set up automatic monthly contributions if desired
- Name a successor account owner in case you pass away before the funds are used
You do not need to be a New Hampshire or Massachusetts resident to use either plan.
Changing the Beneficiary
You can change the 529 beneficiary to another family member — sibling, cousin, spouse, or even yourself — without tax consequences, as long as the new beneficiary is a qualifying family member (as defined by IRS rules). This makes 529 accounts flexible if the original beneficiary does not use all the funds or chooses not to attend college.
Fidelity 529 vs. Vanguard 529 vs. Schwab 529
| Feature | Fidelity UNIQUE | Vanguard Nevada 529 | Schwab 529 |
|---|---|---|---|
| Account fee | $0 | $0 | $0 |
| Lowest index ER | ~0.11% | ~0.14% | ~0.15%–0.18% |
| Age-based index track | Yes | Yes | Yes |
| Individual fund options | Yes | Yes | Limited |
| Roth IRA rollover support | Yes | Yes | Yes |
| K-12 expense eligible | Yes ($10K/year) | Yes ($10K/year) | Yes ($10K/year) |
Fidelity’s index track has the lowest expense ratios of the three, giving it a slight long-term cost advantage. Vanguard’s Nevada 529 is close behind and uses Vanguard’s own ETF-based funds. Both are among the best 529 plans in the country based on national plan ratings.
Key Takeaways
- Fidelity manages two major direct-sold 529 plans (UNIQUE, NH and U.Fund, MA) — open to all US residents
- Index investment tracks start at ~0.11% expense ratio — among the lowest nationally
- Earnings and withdrawals are tax-free for qualified education expenses including K-12 tuition
- No annual contribution limit; the gift tax annual exclusion is $18,000 per beneficiary in 2026
- Unused funds can now be rolled to a Roth IRA for the beneficiary (up to $35,000 lifetime, post-2024 rules)
For how Fidelity’s broader platform works, see our Fidelity review. For low-cost fund options, see our Fidelity ZERO funds guide.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy