NEW 529 DEAL

There is currently a House bill sitting in committee that would let employers make tax-free contributions to 529 college savings plans and Coverdell accounts. Rep. Jon Porter R-NV introduced H.R. 3585. We think this is an excellent idea and would allow the employer /employee relationship some added flexibility when it comes to bonuses and compensation. It would also be a great aid to many small businesses. However the provision that provided for 529 plans in 2001 is set to expire in 2010 and is currently being debated regarding an extension. H.R. 2386 currently has 110 co-sponsors.