After surging 20% in 2004, net new flows into 529s remained flat in 2005, The Wall Street Journal reports. State-sponsored 529 plans took in 13.72 billion in 2004 and $13.69 billion last year.

As a result, states are cutting their administrative fees and trying to increase competition among fund managers by renegotiating their contracts. The increased rivalry is causing managers to lower fees and increase the number of investment choices available.

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