Public Finance and Tax Commentary: Regulatory and Programmatic Impact of Structural Variations Among Section 529 College Savings Plans
7/30/2003
The unique public-private partnership that underlies most Section 529 college savings plans has generated a variety of structures for these state-sponsored, privately-managed investment vehicles. The structural variations influence everything from the type of regulation to which such plans and their brokers are subject, to the flexibility of state sponsors in replacing their plan managers or changing program investments, to the fees payable by plan participants. A basic understanding of the available structural variations and how the structure selected may impact a particular 529 savings plan is advisable for plan sponsors, managers and customers.
This commentary discusses the:
- Relationship of Selected Structure to Applicable Securities Law Requirements
- Impact of Structural Variations Regarding Collection of Sales Loads on State Sponsor's Flexibility in Replacing Program Manager or Program Investments
- Impact on Program Participants of Structural Variations Regarding Collection of Sales Loads
