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Articles
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| College saving plans reaches $100 million mark |
VOICE writes, "The D.C. College Savings Plan, a government-sponsored 529 plan that allows parents to save up for their children’s post-secondary education, last month surpassed the $100 million mark in assets.
The benchmark figure “means that District parents, as well as parents from outside the District, have over $100 million dollars set aside for the children to attend college in the future,” according to a D.C. government news release."
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The savings plan debuted in November 2002 and now has more than 9,000 participants, according to the release. It gives District residents such tax benefits as the ability to deduct up to $3,000 in contributions from the federal adjusted gross income reported on their income tax return each year. The plan offers an array of equity, bond and stability-of-principal investment options.
Recent changes in tax law make 529 plans more attractive, according to the release. The Pension Protection Act of 2006 secured a provision allowing tax-free withdrawal of funds from 529 accounts. And a new change to “kiddie tax” rules makes those under 18 or full-time students between 18 and 24 subject to the same tax rate as their parents for any investment income over $1,700 per year.
— The Voice
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Posted on Oct 11, 2007 19:36pm.
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