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529 News
NASD issues investor alert on 529 plans
(September 13, 2004) - The NASD has issued an Investor Alert providing investors with guidance in the selection of a 529 plan. In the Investor Alert and a related news release, the NASD warns investors that broker-sold 529 plans from outside the investor's home state may cause the investor to lose certain state tax benefits that may be available in the home-state 529. The NASD is currently investigating the 529 sales practices at 20 broker-dealers around the country and has expressed a concern about the high percentage of 529 contributions going to out-of-state 529 plans from investors in states offering a tax deduction for the in-state 529 plan.
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