Issue 303

529 Dash, Required Reading for Your 529 Education: 
The goal of the 529 Dash is to help institutions and financial professionals who help families and employers in the education financial planning process by creating and sharing industry relevant news, product training, and best practices, while also building awareness and understanding of the importance of 529 plans and ABLE accounts.

Please Read, Engage and Share.

Paul Curley, CFA
Associate Director
529 & ABLE Solutions, 
ISS Market Intelligence
Twitter: @PaulCurleyBC

529 News & Research

Here is what you need to know from stories, research, and data released this week:

  • 529 Insiders, “State by State Overview of Potential 529 Plan State Tax Benefits on Contributions.” Editor’s Take: Per plan disclosure and effective January 1, 2023, certain Maine residents who contribute to any 529 plan can receive an income tax deduction up to $1,000 per beneficiary for those 529 contributions if the contributor reports income of less than $100,000 if filing single or less than $200,000 if married filing jointly. As a result, the 529 Insiders article has been updated and annotated its state tax income status board accordingly. Read the plan disclosure to learn more about the details.
  • Fortune, “How parents can navigate 529 college savings plans during a market slump.” Editor’s Take: The recent market slump has impacted the 529 landscape, with 529 assets falling $20 billion from December 2021 to March 2022, according to ISS MI data. However, college savers’ 529 assets may be in less jeopardy than first appears due to the prevalence of target-date funds, where allocations automatically shift into safer investment options as the target date approaches – in this case, the start of the student’s first semester. “Two thirds of 529-using parents are in age-based investment options, and 10 percent of 529 investments are in money-market, FDIC-insured, or stable value investment options,” said Paul Curley, Head of 529 & ABLE Research at ISS MI. According to Curley, parents in those investment options should be “well-prepared for the fall semester.” Thank you Chris Taylor of quoting Paul Curley and ISS MI.
  • 529 Insiders, “2Q 2022 529 Market Sizing Highlights.” Editor’s Take: What was the 529 market sizing as of June 30, 2022? Read to learn more.
ABLE Act Column

ABLE accounts are tax-advantaged savings accounts for certain individuals with disabilities and their families. 
News, Research, Data & Resources:

  • IL ABLE, “News & Updates.” Editor’s Take: On September 17, 2022, IL ABLE announced a reduction in annual account maintenance fees. While inflation is increasing the cost of living, announcements like this will help families. Click the update to learn more.
  • ABLE Age Adjustment Act Status Board: The bill would increase the age of onset for eligibility to open an ABLE account from 26 years old to 46 years old. As of September 15, 2022, the bill sponsorship was as follows:
    • Senate (S331): 1 sponsor and 21 cosponsors
    • Congress Sponsorship (HR1219): 1 sponsor and 96 cosponsors
Events: 529 Conference 2022

529 Conference 2022 will be held from October 17-19, 2022, at The Ritz-Carlton Orlando, Grande Lakes, Florida, USA. 


September 26th, 2022
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