Overland Park,Kan. -- Waddell & Reed Inc. said it will start a Section 529 college savings plan in the fourth quarter.

The Waddell & Reed InvestEd Plan, announced May 24, will be distributed through a partnership with Securities Management and Research Inc., a Houston subsidiary of American National Insurance Co. of Galveston, Tex.

College savings plans, offered under Section 529 of the Internal Revenue Code, are tax-deferred investments for higher education. Asset managers that want to offer 529 plans must be appointed by a state. The company can then offer such programs nationally.

Securities Management and Research has been appointed the exclusive provider of 529 college savings plans for Arizona, and its plan will be available nationally.

Waddell & Reed has $32 billion of assets under management. It distributes its funds through 3,000 financial advisers from more than 250 offices nationwide, including six offices and 370 advisers in Arizona.

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