States, Brokers Outline 529 Abuses for Treasury Dept.

Following Congress’s decision last year to authorize the Department of the Treasury to create regulations for 529 college savings plans, an association representing the plans, as well as groups representing brokers and mutual funds, have written to the Treasury, outlining potential 529 abuses, Defined Contribution and Savings Alert reports.

“It’s clearly in the best interest of the states, as well as private companies that administer the plans, that there be a proposal without undue expense,” noted Jackie Williams, chairman of the College Savings Plan Network, which issued the suggestions from the plans. The other letters were from the Securities Industry and Financial Markets Association and the Investment Company Institute.