November 14, 2000 (PLANSPONSOR.com) - In the midst
of an uncertain election outcome, a lame duck congressional
session and President Clinton's Asian visit, congressional
leaders have opted to put off consideration of the Taxpayer
Relief Act of 2000 until after Thanksgiving.
TRA 2000 includes many of the provisions of the original
pension reform legislation, the Comprehensive Retirement
Security and Pension Reform Act (H.R. 1102), originally
introduced by Representatives Rob Portman (R-OH) and Ben
Cardin (D-MD).
Congress is expected to pass a continuing resolution
that will keep the government operating through December 5,
according to the American Benefits Council.
October 2, 2001 (PLANSPONSOR.com) - Waddell &
Reed, Inc launched its version of the 529 college savings
plan, the Waddell & Reed InvestEd Plan, a tax-deferred
method of saving for post-secondary education.
The plan, available through Waddell & Reed financial
advisors, was established under the Arizona Family College
Savings Program, created by the state of Arizona as a
qualified state tuition program in accordance with Section
529 of the Internal Revenue Code.
Investments in 529 plans grow tax-deferred until
withdrawn, and from 2002, when assets are withdrawn for
qualified higher education expenses such as tuition, room
and board or books, the earnings will be federal income tax
free.
Further, unlike Uniform Transfer to Minor accounts, the
account owner retains control after the beneficiary reaches
legal age, ensuring that the money saved is used for
education expenses.
Portfolios
The plan?s portfolios have been organized as a fund of
funds and are customized based on the beneficiary’s college
time horizon and the appropriate level of investment risk
for that time horizon, specifically:
a greater exposure to equity investments when the
beneficiary is between ages 0 and 8,
a more balanced exposure to equity and fixed income
investments when the beneficiary is between ages 9 and
15, and
a greater exposure to fixed income funds when the
beneficiary reaches age 16.
Account owners can opt-out of the above sequence and
choose to remain in one of the three portfolios for the
life of the account if desired, although such election
would be irrevocable and the account owner would have to
remain invested in the selected portfolio until
withdrawn.