Assets held in 529 college savings plans grew 5% during the third quarter, according to data from Financial Research Corp. that was released Tuesday by the College Savings Foundation.
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Assets rose to $45.1 billion, up 55% since a year earlier.
Section 529 college savings plans, which are offered on a state-by-state basis, give federal-income-tax-free treatment to earnings and distributions made from plan accounts for qualified education costs.
Financial Research Corp. estimated net sales of 529 savings plans in the third quarter at $2.2 billion, compared with $2.9 billion in both the second quarter of 2004 and the third quarter of last year. The plans have had $9.2 billion of net sales this year, up 21% from the year before.
