Proposed Act would aid state 529 plans

By Gary Linnell

ProWEB Wire (Industry News)

In response to several state 529 plans losing between 20 percent and 50 percent throughout the past two years, the House recently passed the Deposit Restricted Qualified Tuition Programs Act.

This Act, which must still be approved by the Senate, would allow all state 529 college savings plans to add FDIC-insured CD products to their offering.

This is significant seeing as there are currently but eight states that offer FDIC-insured 529 options -- including Arizona, Montana, Ohio, Wisconsin, Virginia and Colorado, which are offering certificates of deposit.