Trying to create a new niche in the 529 market and garner some of the assets of the hundreds of thousands of charitable organizations around the world, Seligman Advisors has come out with a 529 college savings scholarship account.
Scholarship 529 is not a new product, but a new spin on an existing college savings vehicle that Seligman established in December 2001 in North Carolina, according to Gary Tarpening, senior vice president at J. & W. Seligman. The product takes advantage of a section of the Internal Revenue Code to allow a charity to invest in a 529 college savings scholarship account, which may allow the plan administrator to build a substantial balance. Low balances have been one of the pitfalls of 529s thus far.