Susan E. Thomas CPA
Newsletter
The Economic Growth and Tax Relief Reconciliation Act of 2001 contains sunset provisions. Should I be worried about this?

Answer:

No. The Economic Growth and Tax Relief Reconciliation Act of 2001 made qualified withdrawals from a 529 plan tax free at the federal level until December 31, 2010, when the benefit was scheduled to sunset, or expire. But the Pension Protection Act of 2006 removed the sunset provision, making qualified withdrawals from a 529 plan permanently tax free at the federal level.

Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about 529 plans is available in each issuer's official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits.



Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011