Do You Sell 529 Plans?

The rules are changing for brokers that are selling 529 plans.  The SEC approved changes filed by the Municipal Securities Rulemaking Board, requiring that brokers who sell out-of-state 529 plans disclose to their customers the possibility of losing favorable tax benefits available with their home state’s plans.  Additionally, active suitability analysis should be performed when recommending 529 college savings plans.  It is important to remember that information about the beneficiary, such as his or her age and the number of years until the funds will be needed to pay for qualified higher education expenses, is relevant when considering the customers investment objective.

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