U.FUND College Investing Plan

The Massachusetts 529 plan, MEFA's U.Fund College Investing Plan, is a tax-advantaged investment plan, professionally managed by Fidelity, to help reach your child's educational dreams.

Open a 529 account

What you'll need to open an account

No annual account fees or minimums
There's no minimum and no account fees to open a Fidelity-managed 529 account.

Tax-smart savings
Any earnings grow federal income tax deferred, plus get tax-free withdrawals for qualified education expenses.

Flexible use of funds
Pay for college, trade school, and K–12 nationwide, including tuition, fees, and books.¹

The U.Fund College Investing Plan received Morningstar's Gold Rating for the second year in a row²

Read Morningstar's 529 industry report

Account overall max:
$500,000 maximum balance per beneficiary³

State tax deduction:
$1,000 individual, $2,000 married couple

Earnings:
Any earnings grow federal and Massachusetts income tax–deferred.

Withdrawals:
Qualified withdrawals are free from both federal income tax and Massachusetts income taxes

College savings incentive programs:
BabySteps, a program designed to encourage saving for college, provides a $50 seed deposit into a U.Fund account for any child who is a MA resident and is born or adopted on or after January 1, 2020 (within one year of the birth or adoption).

NextSteps, a college savings incentive program sponsored by MEFA. The program provides for a one-time $50 matching contribution to an individual U.Fund Plan Account opened on or after January 1, 2026 for a child aged no less than one year old and no more than three years old, that are a Massachusetts resident. Visit the NextSteps Plan rules (PDF) for more information

Plan performance and application:
Download the annual report (PDF)
Access the plan application & fact kit

When you open your 529 account, you’ll choose from among different investment portfolios. You can change the asset allocation twice each calendar year, or if you change the beneficiary of your 529 account.

The MA plan offers 3 types of portfolios: age-based, static, and individual. You can allocate money among these investment portfolios, in 5% increments that total 100%. Before you open your account, think about what you might want to invest in.

Age-based investing

An age-based portfolio may be right for you if you want a professionally managed portfolio that adjusts the asset allocation based on your beneficiary’s age—shifting to more conservative investments as college gets closer.

Fidelity Funds are actively managed mutual funds that attempt to beat the market, for investors with higher risk tolerance. Fidelity Index Funds are low-cost index mutual funds that closely mirror the market, for investors with lower risk tolerance. Fidelity Blend Funds incorporate both, for investors with moderate risk tolerance.

MA Portfolio 2045 (Born 2026–2028)
Funds | Blend | Index

MA Portfolio 2042 (Born 2023–2025)
Funds | Blend | Index

MA Portfolio 2039 (Born 2020–2022)
Funds | Blend | Index

MA Portfolio 2036 (Born 2017–2019)
Funds | Blend | Index

MA Portfolio 2033 (Born 2014–2016)
Funds | Blend | Index

MA Portfolio 2030 (Born 2011–2013)
Funds | Blend | Index

MA Portfolio 2027 (Born 2008–2010)
Funds | Blend | Index

MA College Portfolio (Born 2007 or earlier)
Funds | Blend | Index

View information on the portfolios’ short-term performance, or average annual total returns by month or by quarter. Please review the 529 plan Fact Kit (PDF) for more detailed information.

Static investing

A static portfolio may be right for you if you want a diversified portfolio, with an asset allocation that stays constant over time. You'll get a combination of equity, fixed income, and short-term investments.

MA Aggressive Growth Portfolio
Funds | Index

MA Moderate Growth Portfolio
Funds | Index

MA Conservative Portfolio
Funds | Index

View information on the portfolios’ short-term performance, or average annual total returns by month or by quarter. Please review the 529 plan Fact Kit (PDF) for more detailed information.

Individual investing

Individual investing may be right for you if you want greater flexibility over your investment strategy. Each portfolio contains holdings all from one asset class, like equity, fixed income, short-term investments, and bank deposit options. You decide how to allocate your money in 5% increments.

MA 500 Index Portfolio

MA Total Market Index Portfolio

MA International Index Portfolio

MA Climate Action Porfolio

MA Intermediate Treasury Index Portfolio

MA Sustainable Multi-Asset Portfolio

MA Money Market Portfolio

MA Bank Deposit Portfolio^{4, 5}

View information on the portfolios’ short-term performance, or average annual total returns by month or by quarter. Please review the 529 plan Fact Kit (PDF) for more detailed information.

Recurring contributions can potentially help your money grow—and reduce the amount of student loans borrowed.*

More information*

*This hypothetical example illustrates the potential value of different regular monthly investments for different periods of time and assumes an average annual return of 4.5% rounded to the nearest $50. Contributions to a 529 plan account must be made with after-tax dollars. This does not reflect an actual investment and does not reflect any taxes, fees, expenses, or inflation. If it did, results would be lower. Returns will vary, and different investments may perform better or worse than this example. Periodic investment plans do not ensure a profit and do not protect against loss in a declining market. Past performance is no guarantee of future results.

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How to open a MEFA U.Fund account

See how you can open an account online.

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The ABCs of 529 savings plans

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Learn even more about saving for education

Should I open a 529 account offered by the state I live in, or another state?

You can open a 529 account offered by any state. Be sure to consider your own state’s plan as it may have additional benefits, including state tax advantages. No matter what state your child will attend school in, you can use a 529 account to pay for qualified education expenses at eligible institutions nationwide.

What if my child doesn’t go to college, or there’s money left in the 529 account after they graduate?

You have a few options. You can change the 529 account beneficiary to an eligible family member for their qualified education expenses. Or, you may be eligible to transfer assets from the 529 to a Roth IRA in the beneficiary’s name.⁶ Finally, you can take a non-qualified withdrawal. Only the portion of the non-qualified withdrawal attributed to investment earnings will be subject to federal and state income taxes, plus a 10% federal penalty.

See all 529 plan FAQs

Who is MEFA?

MEFA is a state administrator working with Fidelity Investments to offer the U.Fund. A state authority established in 1982 by the Massachusetts Legislature, MEFA's mission since its founding has been to help students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, competitive-rate loans, and expert guidance. All of MEFA's work aligns with their goal to support the independence, growth, and success of students and families. For more information on MEFA, visit mefa.org/about

MEFA education loans

MEFA offers competitive, fixed interest rate loans to help families pay for college, as well as an education refinancing loans designed to lower the monthly payment and interest rate for individuals repaying education loans.

College planning guidance

MEFA's free guidance is available to families in every phase of college planning and includes emails, articles, videos, a podcast, seminars, webinars, calculators, and timelines. Visit mefa.org to access all resources.

Note: If you’re opening the account before the child is born, you can name yourself as the beneficiary. You can make the child the beneficiary as soon as you know their name, date of birth, and Social Security number.

Portfolio	Estimated Underlying Fund and Management Expenses¹	Program Manager Fee²	State Fee³	Miscellaneous Fee⁴	Total Annual Asset-Based Fee⁵	Annual Account Maintenance Fee⁶
MA Portfolio 2045 (Fidelity Funds)⁷	0.68%	0.07%	0.08%	N/A	0.83%	N/A
MA Portfolio 2042 (Fidelity Funds)	0.65%	0.07%	0.08%	N/A	0.80%	N/A
MA Portfolio 2039 (Fidelity Funds)	0.62%	0.07%	0.08%	N/A	0.77%	N/A
MA Portfolio 2036 (Fidelity Funds)	0.59%	0.07%	0.08%	N/A	0.74%	N/A
MA Portfolio 2033 (Fidelity Funds)	0.56%	0.07%	0.08%	N/A	0.71%	N/A
MA Portfolio 2030 (Fidelity Funds)	0.51%	0.07%	0.08%	N/A	0.66%	N/A
MA Portfolio 2027 (Fidelity Funds)	0.45%	0.07%	0.08%	N/A	0.60%	N/A
MA College Portfolio (Fidelity Funds)	0.43%	0.07%	0.08%	N/A	0.58%	N/A
MA Aggressive Growth Portfolio (Fidelity Funds)	0.78%	0.07%	0.08%	N/A	0.93%	N/A
MA Moderate Growth Portfolio (Fidelity Funds)	0.67%	0.07%	0.08%	N/A	0.82%	N/A
MA Conservative Portfolio (Fidelity Funds)	0.30%	0.07%	0.08%	N/A	0.45%	N/A
MA Money Market Portfolio*	0.37%	0.07%	0.08%	N/A	0.52%	N/A
MA Climate Action Portfolio	1.05%	0.07%	0.08%	N/A	1.20%	N/A

Portfolio	Estimated Underlying Fund and Management Expenses¹	Program Manager Fee²	State Fee³	Miscellaneous Fee⁴	Total Annual Asset-Based Fee⁵	Annual Account Maintenance Fee⁶
MA Portfolio 2045 (Fidelity Index)⁷	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Portfolio 2042 (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Portfolio 2039 (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Portfolio 2036 (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Portfolio 2033 (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Portfolio 2030 (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Portfolio 2027 (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA College Portfolio (Fidelity Index)	0.05%	0.025%	0.045%	N/A	0.12%	N/A
MA Aggressive Growth Portfolio (Fidelity Index)	0.04%	0.025%	0.045%	N/A	0.11%	N/A
MA Moderate Growth Portfolio (Fidelity Index)	0.04%	0.025%	0.045%	N/A	0.11%	N/A
MA Conservative Portfolio (Fidelity Index)	0.04%	0.025%	0.045%	N/A	0.11%	N/A
MA Intermediate Treasury Index Portfolio	0.03%	0.025%	0.045%	N/A	0.10%	N/A
International Index Portfolio	0.05%	0.025%	0.045%	N/A	0.12%	N/A
Fidelity 500 Index Portfolio	0.01%	0.025%	0.045%	N/A	0.08%	N/A
Total Market Index Portfolio	0.01%	0.025%	0.045%	N/A	0.08%	N/A

Portfolio	Estimated Underlying Fund and Management Expenses¹	Program Manager Fee²	State Fee³	Miscellaneous Fee⁴	Total Annual Asset-Based Fee⁵	Annual Account Maintenance Fee⁶
MA Portfolio 2045 (Blend)⁷	0.48%	0.03%	0.07%	N/A	0.58%	N/A
MA Portfolio 2042 (Blend)	0.46%	0.03%	0.07%	N/A	0.56%	N/A
MA Portfolio 2039 (Blend)	0.43%	0.03%	0.07%	N/A	0.53%	N/A
MA Portfolio 2036 (Blend)	0.41%	0.03%	0.07%	N/A	0.51%	N/A
MA Portfolio 2033 (Blend)	0.38%	0.03%	0.07%	N/A	0.48%	N/A
MA Portfolio 2030 (Blend)	0.35%	0.03%	0.07%	N/A	0.45%	N/A
MA Portfolio 2027 (Blend)	0.31%	0.03%	0.07%	N/A	0.41%	N/A
MA College Portfolio (Blend)	0.28%	0.03%	0.07%	N/A	0.38%	N/A
MA Sustainable Multi-Asset Portfolio	0.05%	0.03%	0.07%	N/A	0.15%	N/A

U.FUND College Investing Plan

529 overview

Plan details

U.Fund plan information