Section 529 Qualified Tuition Programs

Be Prepared for Changes

Peter D. Lucido, JD, LLM

Recent events have focused a spotlight on IRC section 529 qualified tuition programs, one of the most popular ways to save for college. Depending on one's point of view, these plans have either been a great success in helping U.S. taxpayers save for education or have been a giveaway to the rich. On September 9, 2009, the U.S. Treasury Department issued a report, “An Analysis of Section 529 College Savings and Prepaid Tuition Plans,” that examined these plans (www.treas.gov/press/releases/docs/529.pdf). It is expected that Congress will soon evaluate whether the rules governing these plans should be changed and whether their current tax benefits should continue to be available to all taxpayers.