Institute Recommends Improved Section 529 Plan Tax Disclosure

Washington, DC, April 12, 2002 - The Municipal Securities Rulemaking Board (MSRB) should require all broker-dealers offering or selling Section 529 college savings plans to make investors aware of the state tax consequences of investing in a Section 529 plan, according to a recent Institute letter.

The Institute notes in the letter that some investors may be purchasing out-of-state Section 529 plan securities without taking into account that plans offered by their home state may provide more favorable tax treatment.