Recent State News
NJ Governor proposes $1,000 'baby bond' for children to close wealth gap
New Jersey Gov. Phil Murphy (D) proposed on Tuesday a $1,000 “baby bond” nest egg for children from lower income families in an effort to close the wealth gap in the state.The governor included the baby bond proposal in an amended state budget, as a scaled-down version of Sen. Cory Booker’s (D-N.J.) congressional legislation to address the gap in wealth. Murphy said the idea was “inspired by the trailblazing work” of Booker to address financial inequities specifically between white and Black families.The proposed baby bonds would provide $1,000 to each child born in 2021 into families earning less than about $131,000 per year or 500 percent of the federal poverty level, helping about three of every four children born in the state.
Working Families College Savings Act Extended Until 2032
The Working Families College Savings Act, originally enacted in 2019, has been extended for ten years by the Colorado legislature. The bipartisan act provides an innovative resource for Colorado employers to boost their employees’ CollegeInvest 529 savings accounts. The original legislation ensured the program would continue through 2022; now with this extension the program will continue to boost the college savings of Colorado families through 2032.The plan offers a Colorado tax credit for employers who make contributions to CollegeInvest savings plans owned by their employees. The accounts can be used by any beneficiary including children, grandchildren, nieces, nephews, even for the employee’s own higher education goals. The available tax credit is 20% of the amount contributed to a CollegeInvest 529 account, up to $2,500 per employee. Within that scope, employers will have the flexibility to design specific benefit strategies that best suit their business needs, and the needs of their employees.
Morgan Stanley to launch nation’s first advisory 529 Plan; North Carolina to be sponsor
Morgan Stanley announced today the Firm will launch the Morgan Stanley National Advisory 529 Plan, the industry’s first advisory 529 Plan, which strategically aligns with the Firm’s goals-based investing approach to help families save and invest for future education expenses. Morgan Stanley has contracted with the North Carolina State Education Assistance Authority (NCSEAA) to sponsor the Plan. The Morgan Stanley National Advisory 529 Plan will be offered exclusively through Morgan Stanley Wealth Management Financial Advisors to their clients in North Carolina and nationally, and is expected to be available in the Fall.