Morningstar Offers 529 Tool for Advisers

Morningstar has developed a Web-based tool to help financial advisers generate reports to communicate to investors all the fees and state tax benefits associated with 529 college savings plans, in response to the new Municipal Securities Rulemaking Board (MSRB) interpretation that became effective on Monday, Aug. 7.

Among other requirements, the new MSRB rule requires brokers, dealers and municipal securities dealers to disclose the state tax benefits that would not be available to the investor as a result of investing in an out-of-state 529 plan. Morningstar's new tool, the 529 Suitability Manager, enables advisers to present these and other disclosures to investors in straightforward, easy-to-read reports.