With fewer than 1,400 accounts and a mere $16.8 million in assets, Wyoming's 529 plan may shut down, Dow Jones reports. If that were to happen, the state is expected to shift those accounts to Colorado's college savings plan. Wyoming's state legislature is expected to vote on the matter in February or March.
One of the reasons Wyoming has had difficulty in attracting interest in its 529 plan is that it charges an annual fee of 90 basis points, which in some cases is three times the amount that other 529 plans charge. And that has created a sort of Catch-22 situation; with such a high fee, the plan hasn't been able to increase assets to create economies of scale.
Secondly, without a state income tax, Wyoming hasn't been able to offer investors any tax breaks.
"We can't attract outsiders, and our in-state population won't support a plan on its own," commented Sharon Garland, Wyoming's deputy treasurer.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.