Alert September 15, 2009

Treasury Issues Report on 529 Plans

The Treasury issued a report examining 529 plans that it prepared for the White House Task Force on Middle Class Working Families.  The report examines how 529 plans are used by investors and makes recommendations regarding (a) increased availability of age-based index funds, (b) elimination of home-state bias, (c) introduction of per beneficiary contribution limits, (d) improved reporting of investment option performance, (e) additional reporting to policy makers on 529 plan use and (f) strengthened compliance and monitoring of 529 plans and their disbursements.