The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:529s Attract Interest from the Obama Administration Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, October 05, 2009

529s Attract Interest from the Obama Administration

by: Adam Kommel

The Obama administration is hoping that 529 college-savings plans can work for middle- and low-income families, The Wall Street Journal reported Monday.

Among the changes proposed to 529s is to allow state-tax benefits to be available no matter which state's fund a family invests in. Right now, tax benefits in most states are only offered to families that invest in their home states' plans.

The Treasury Department has suggested a cap on contributions for each beneficiary, though it did not give a specific number. Such a plan would prevent high-income families from possibly avoiding estate taxes and would also “potentially free up federal resources for education aid that could be targeted to low- and middle-income families,” according to a Treasury report.

The Treasury also encouraged use of low-cost index funds to reduce expenses. Many states do not currently offer index funds in their popular age-based portfolios, which are similar to target-date retirement funds but grow more conservative as the beneficiary reaches college age.

At the end of June 2009, there was $98.6 billion invested in 529 plans. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use