Sec. 529 Plans

Editor:
Albert B. Ellentuck, Esq.
Of Counsel
King & Nordlinger, L.L.P.
Potomac, MD

Editors note: This case study has been adapted from Tax Planning for High Income Individuals, 3d Edition, by Anthony J. DeChellis, Douglas L. Weinbrenner, Catherine A. Roeder and Patrick L. Young, published by Practitioners Publishing Company, Ft. Worth, TX, 2003 ((800) 3238724; www.ppcnet.com).

Facts: Jack Jones, a longtime client, has a two-year old daughter who will eventually attend college. Jack wants to begin saving for college currently; thus, he asks his tax adviser various questions about Sec. 529 plans. Issue: How can Jack compare these plans?

Analysis

Exhibit 1 and Exhibit 2 contain useful tools for reviewing Sec. 529 plans. Exhibit 1 is a checklist of questions to ask in examining a plan; Exhibit 2 is a worksheet for comparing up to three such plans side by side.

Information on individual state plans is available by calling (877) 2776496 or by visiting www.collegesavings.org.