NU Online News Service, May 14, 12:55 p.m. – Manufacturers Life Insurance Company, Boston, a unit of Manulife Financial Corp., Toronto, has launched Manulife College Savings Employee Select, a voluntary 529 college savings benefit program.
Employees at participating companies can enroll in the program with contributions of as little as $50 per month.
Section 529 of the federal Internal Revenue Code lets each state set up its own college savings program. Investors who live in the state that sponsors a program can often defer state income taxes on contributions. Perhaps more important, consumers who invest in a program sponsored by any state can usually defer federal income taxes on the contributions.