In an effort to gain access to the education savings market, investment management companies are increasingly looking to partner with existing state-sponsored "529" college savings plans (See MFMN, 9/3/01). But standards don't yet exist for 529 partnerships, so the nature of the arrangements among these companies is different with each one.

Each state can offer a 529 plan in conjunction with an investment management firm. That has created a somewhat limited market, because, unlike 401(k) and IRA plans, the 529 plans are limited to one per state, and some states are only offering them to in-state residents.

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