Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Yet Another Way LSAs Could Sink 529 Plans Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, February 4, 2003

Yet Another Way LSAs Could Sink 529 Plans

by: Sean Hanna, Editor in Chief

Look out! College savings plans may become popular if President Bush's 2004 budget is passed as proposed. But that popularity may be brief and hurt 529 providers more than it helps them. Hidden inside the retirement account provisions is a temporary provision that would allow 529 account holders to roll their accounts into a Lifetime Savings Account (LSA).

The surge in assets could come from investors taking advantage of the loophole to bypass the $7,500 contribution limit on LSAs. It works like this:

  • Open a 529 with up to $100,000 as the initial deposit. (Amounts greater than $100,000 would trigger gift taxes).
  • Roll the 529 into an LSA and immediately close the 529.

    Voila, the investor has funded an LSA with $100,000 and the 529 provider has a paperwork headache. Whether the 529 provider still has the assets is another question altogether. Under the proposed budget, the loophole would be open for 12 months.  

    Stay ahead of the news ... Sign up for our email alerts now
    CLICK HERE

  • 0.0
     Do You Recommend This Story?



    GO TO: MFWire
    Return to Top
     News Archives
    2024: Q4Q3Q2Q1
    2023: Q4Q3Q2Q1
    2022: Q4Q3Q2Q1
    2021: Q4Q3Q2Q1
    2020: Q4Q3Q2Q1
    2019: Q4Q3Q2Q1
    2018: Q4Q3Q2Q1
    2017: Q4Q3Q2Q1
    2016: Q4Q3Q2Q1
    2015: Q4Q3Q2Q1
    2014: Q4Q3Q2Q1
    2013: Q4Q3Q2Q1
    2012: Q4Q3Q2Q1
    2011: Q4Q3Q2Q1
    2010: Q4Q3Q2Q1
    2009: Q4Q3Q2Q1
    2008: Q4Q3Q2Q1
    2007: Q4Q3Q2Q1
    2006: Q4Q3Q2Q1
    2005: Q4Q3Q2Q1
    2004: Q4Q3Q2Q1
    2003: Q4Q3Q2Q1
    2002: Q4Q3Q2Q1
     Subscribe via RSS:
    Raw XML
    Add to My Yahoo!
    follow us in feedly




    ©All rights reserved to InvestmentWires, Inc. 1997-2024
    14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
    Privacy Policy :: Terms of Use