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529 News

Federal Tax Reform Panel to propose new family savings accounts

(October 20, 2005) - At its October 18, 2005 meeting, the President's Advisory Panel on Federal Tax Reform outlined the proposals that it expects to submit in its November 1, 2005 final report. Savings incentives would be found in three new savings programs - SaveAtWork, SaveForFamily, and SaveForRetirement - to replace existing vehicles. Up to $10,000 per year in after-tax contributions could be made to the SaveForFamily accounts, with tax-free withdrawals for education among the qualifying purposes. No mention was made of the fate of current Section 529 under the proposals introduced at the meeting.

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