The NASD has fined MetLife Inc. (MET) and JP Morgan Chase & Company (JPM) $500,000 each for not “establishing adequate systems and procedures for supervising the sale of 529 college savings plans.” NASD officials said about the specifics of the fine “MetLife must pay $376,000 into a compensation fund for about 300 customer accounts, and Chase must pay about $288,500 into about 300 of its accounts.”
The article explains a little about 529 plans:
The District of Columbia and all states but Wyoming sponsor 529 college savings plans. Taxpayers can get federal tax breaks by contributing to 529 plans sponsored by any state, but most states limit use of breaks on state income taxes to residents who use home-state 529 plans.
I personally do not like 529 plans as they hurt a college bound kids chances of getting financial aid and the money can only be used for college expenses. A positive aspect of 529 plans is the money can be passed to another child for college expenses.
I am reviewing latest news about 529 plans on http://www.Plans529.com . It has great section about all states 529 plans as well as money saving offers for college savings.
Posted by: Nick | December 19, 2006 7:54 AM | Permalink to Comment