New Law Helps College-Bound Delawareans
Dover, DE - As Delaware's students prepare to head back into the classroom, some good news from Washington D.C. arrives as President Bush signs sweeping pension legislation that will have a major impact on the way families save for college. The Pension Protection Act of 2006 contains key provisions pertaining to 529 college savings plans.
"This is really big news for Delaware's families who currently have, or are considering opening a 529 Delaware College Investment Plan for their children," State Treasurer and Delaware College Investment Plan Chair Jack Markell said Thursday after the bill was signed into law. "The tax-exempt status for these plans was set to expire in 2010, and thanks to the support of Delaware's congressional delegation, this tax-advantage is now permanent. This increases the incentive to encourage Delaware families to save for college federal tax-free with the confidence that any growth in assets will not be taxed."
The Delaware College Investment Plan, administered by Fidelity Investments, provides professionally managed investments, high contribution limits, no income restrictions, and the ability for parents, guardians or grandparents to maintain control of an account specifically dedicated for college or accredited trade school expenses. Because Delaware follows federal tax regulations, withdrawals from the Delaware College Investment Plan are completely tax-free for residents. Currently over 23,470 families participate in the Fidelity administered plan and they have saved over $300 million for education.
To learn more about Delaware College Investment Plan, please call Fidelity at 800/343-3548 or visit www.fidelity.com/delaware.
