View our latest poll:
Do you think states should be giving state tax deductions for 529-plan contributions?
529 Plan Details:
Enter your state:
World's Simplest College Calculator:
How old is your child?
Find a 529 Pro:
Enter your zip code:
Enroll In a 529 Plan:
Joe's blog
The '529 Guru' offers his random thoughts.
Most Recent Blog
12/17/2009:
To honor the upcoming year 2010 I now present to you Hurley's List of 10 Things That Would Improve 529 Plans:
10. Permanent rules (a) allowing 2-4 investment changes in your 529 account every year and (b) including computer costs as qualified higher education expenses.
9. Inclusion of student loan repayments as qualified higher education expenses.
8. Every 529 savings plan comparing its investment results to performance benchmarks (and displaying the comparison on its website).
7. States deciding on their own to repeal their state income-tax deductions for contributions to their 529 plans.
6. Every state offering to match some level of contributions made by low- and moderate-income families.
5. A promise from every “lowest-cost” 529 plan that it will automatically adjust fees downward to meet the competition.
4. More prepaid tuition plans that involve schools taking on some or all of the risk (see Texas Tuition Promise, University of Alaska ACT, Massachusetts U.Plan, and Independent 529 Plan).
3. A change in the gift-tax rules: Choose an irrevocable 529 account and it’s a gift. Choose a revocable 529 account and it’s not.
2. The ability to transfer funds between 529s and IRAs.
1. Permission from the IRS to donate your leftover 529 account to a charitable scholarship program.
So there you have it. No reason why they can't all happen, which would be awesome.
Past Blogs
10/27/2009: Last month I suggested on this blog that the thirty-plus states currently offering a state tax deduction for 529-plan contributions repeal (i.e. eliminate) their tax deductions. I set forth several reasons for doing this, all of which I felt were rather sensible. As one might expect, I did not rece... Read More
10/22/2009: What started out as a raw deal for tens of thousands of Texas families has turned into an incredible opportunity. I'm referring to those families who purchased contracts in the now-closed Texas Guaranteed Tuition Plan for beneficiaries who are currently under age 18. First a little background: To help stem a flood of red ink caused by a combination of soaring public tuition and fund i... Read More
10/20/2009: The College Board came out with its annual study of college pricing today, and the data will undoubtedly outrage many parents, politicians, and observers of higher-education trends. For two-year public colleges, tuition and fees rose 7.3% on average for 2009-10 compared to the previous ye... Read More
09/30/2009: At last count, 34 of the 41 states with a personal income tax—plus the District of Columbia—offered some type of state income-tax deduction or tax credit for money contributed into the home-state 529 plan. Five of those states allow the deduction for contributions to an out-of-state 529 plan as well. Millions of families have taken advantage of these deductions over the years, reducing state tax b... Read More
09/10/2009: The Treasury Department's Analysis of Section 529 College Savings and Prepaid Tuition Plans, released yesterday, is a good primer on 529 college savings plans and the need for an effective education savings program. However, it is also notable for its lack of specifics and dearth of new ideas when it comes to suggesting ways to make 52... Read More
09/04/2009: The changes just announced by the frozen Texas Guaranteed Tuition Plan -- a prepaid tuition plan crippled by a huge program deficit -- send shivers down my spine. In short, the rug is being pulled out from under many of the plan's 100,000+ current participants. Under the old rules, the participant could cancel the contract once the child turned 18, and receive a refund of the current tuition-c... Read More
NEXT
Login to My Account