Tax ruling gives SMART529 investors leeway
CHARLESTON –
A ruling by the U.S. Treasury and the Internal Revenue Service will allow SMART529 enrollees to change their investment strategies twice a year, State Treasurer John Perdue’s office announced.
Currently, SMART529 investors may make only one change per year and per account to the way their funds are allocated for investment. SMART529 is a type of college savings vehicle, so named for a section of IRS code. SMART529 is officially sanctioned by the West Virginia College Savings and Prepaid Tuition Fund.
Previously, owners of 529 plan accounts could change their investment strategy once per calendar year. The new ruling – in effect for calendar year 2009 – is a direct response to current market conditions and a desire to give investors more flexibility.
“We’re happy with the federal ruling,” said Treasurer Perdue, president of the West Virginia board. “Those in the Treasurer’s Office who market and oversee our plan, along with officials of other plans, have been lobbying the IRS on this issue. With the financial markets the way they are, parents should have additional opportunities to adjust on the fly.”
To learn more about this new ruling, go to
www.IRS.gov. For more information on SMART529, visit the program web site at www.smart529.com; call toll-free at 1-877-767-8529; or contact your local bank’s investment firm.