Issue 347

529 Dash, Required Reading for Your 529 Education:
The goal of the 529 Dash is to help institutions and financial professionals who help families and employers in the education financial planning process by creating and sharing industry relevant news, product training, market data and best practices, while also building awareness and understanding of the importance of 529 plans and ABLE accounts.

Please Read, Engage and Share.

Paul Curley, CFA
Associate Director
529 & ABLE Solutions, ISS Market Intelligence
paul.curley@issmarketintelligence.com
Twitter: @PaulCurleyBC

529 News & Research

Here is what you need to know from stories, research, and data released this week:

Think Advisor, “529-to-Roth Rollovers: What We Still Don’t Know.” Editor’s Take: Thank you Think Advisor for raising awareness and understanding of advisors on he basics and open questions relating to 529 distributions to Roth IRAs. Based on proprietary advisor survey results reported in the 529 Distribution Analysis 2023 by ISS Market Intelligence, 84% of advisors were aware of this upcoming functionality as of November 2023, while 16% were not. Articles like this will help to solve the awareness hurdle.
- 529 Insiders, “Status Board: State Income Tax Treatment on 529 Distributions to Roth IRAs.” Editor’s Take: Effective 2024, certain types of qualified transfers from 529s to Roth IRAs will be allowed from a federal income tax perspective. From a state income tax perspective, this article categorizes the transfer as a qualified expense, non-qualified expense or decision pending from a state income tax recapture perspective for those that file state income tax with those states. This status board is for information purposes only based on publicly available information as of publication date, and you and your clients are responsible for determining the eligibility of a 529 distribution to a Roth IRA rollover. This article will be updated over time as more information becomes available. Current status board available in the link.
Higher Ed Dive, “Colleges won’t receive FAFSA applicant info until March, Education Department says.” Editor’s Take: Uncertainty in access and availability of financial aid increases demand of taking ownership of the college financial planning process by opening and funding a 529 plan. Have the education financial planning conversation today.
529 Insiders, “4Q 2023 529 market sizing highlights.” Editor’s Take: What was the 529 market sizing as of 4Q 2023 (December 31, 2023)? Click the link to learn more.

ABLE News & Research

Here is what you need to know from stories, research, and data released this week:

IL ABLE, “Meet Tom – IL ABLE Account Owner.” Editor’s Take: Thank you IL ABLE and JJ Hanley for sharing the ABLE user perspective, and for presenting at the ABLE Summit 2023 in the video here. Watch, learn and share.
ABLE NRC, “ABLE tax time tips.” Editor’s Take: On February 6th at 2pm EST, ABLE NRC will host a webinar on tax tips, guidance and steps.
529 Insiders, “4Q 2023 529 market sizing highlights.” Editor’s Take: What was the ABLE market sizing as of 4Q 2023 (December 31, 2023)? Click the link to learn more.