Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Regulation and Compliance > State Regulation

Principal To Sell Alliance Capital 529 Plans

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Nov. 13, 1:50 p.m. – Principal Financial Group Inc., Des Moines, Iowa, has agreed to sell 529 college savings plans from Alliance Capital Management L.P., New York, starting in January 2003.

Principal will sell the plans, which will appear under the Principal CollegeBound fund brand name, at the worksite through its retirement services operation and at the retail level through its network of financial advisors and brokers.

Alliance Capital will provide the investment management and administration services. The program will be based on the Rhode Island 529 college savings plan, which offers a choice of 15 investment options managed by Alliance Capital.

Section 529 of the Internal Revenue Code gives each state the authority to set up its own 529 college savings plan program. The code exempts taxpayers from paying federal income taxes on either contributions to or normal distributions from the plans. States can offer breaks on state income taxes to the state residents who participate in their plans.

Once a state sets up a 529 program, it can open the program to taxpayers throughout the United States, but the breaks on state income taxes help only residents of the sponsoring state.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.