WHAT’S AHEAD

Among other trends predicted in FRC’s 529 plan research report:

  • New 529 plan providers will enter the business as smaller vendors exit because of high costs and lack of scale.
  • Multi-manager programs and multi-program networks will continue to expand as state agencies and private vendors seek to increase choices for investors.
  • Vendors and states that sponsor plans will disclose increasing amounts of information about their plans, including fees and expenses.
  • There will be a push to simplify the tax treatment of contributions and withdrawals.
  • State tax legislation restricting choice between programs will be eliminated.

Reproduced from National Underwriter Edition, May 21, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.