[Federal Register Volume 74, Number 143 (Tuesday, July 28, 2009)]
[Notices]
[Pages 37307-37308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17916]


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DEPARTMENT OF THE TREASURY


Report on Section 529 College Savings Plans

AGENCY: Departmental Offices, Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury invites the general public to 
submit information pertinent to a report it will issue on Section 529 
college savings plans. Such information could include data, research 
studies, opinions citing hard data, or references thereof. The report 
is an initiative of the Middle Class Task Force chaired by Vice 
President Joe Biden and was announced in an April 17th press release 
that can be found at http://www.whitehouse.gov/the_press_office/Middle-Class-Task-Force-Holds-Meeting-on-College-Affordability/. The 
report will examine how people save using 529 plans and whether they 
are taking appropriate steps to manage risk. In addition, the report 
will identify options and best practices for making the 529 plans more 
effective.

DATES: Written comments must be received on or before August 14, 2009, 
to be assured of consideration.
    Submission of Comments: Please submit comments electronically 
through the Federal eRulemaking Portal--``Regulations.gov.'' Go to 
http://regulations.gov, select ``Department of the Treasury'' from the 
agency menu to submit or view public comments. The ``How to Use This 
Site'' and ``User Tips'' links on the Regulations.gov home page provide 
information on using Regulations.gov, including instructions for 
submitting or viewing public comments, viewing other supporting and 
related materials, and viewing the docket after the close of the 
comment period.
    Please include your name, affiliation, address, e-mail address, and 
telephone number(s) in your comment. All statements received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. You should submit only 
information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: [email protected].

SUPPLEMENTARY INFORMATION: The Treasury Department is particularly 
interested in data, research studies, opinions citing hard data, or 
references thereof, relating to the specific questions set forth below.
    1. To what extent are Section 529 savings plan investment options 
prudent and to what extent do they accommodate reasonable attitudes 
toward risk?
    2. To what extent are Section 529 savings plans invested wisely?
    a. Is there a tendency for accounts to be too heavily invested in 
equities?
    b. To what extent do account owners sell equities when prices are 
falling and buy equities when prices are rising?
    c. Should plans take steps to better assist account owners in 
making prudent investment choices? If so, what steps would be 
appropriate?
    3. To what extent are Section 529 savings plan account fees 
reasonable?
    a. How do fees compare with similar retail mutual funds, and what 
factors might explain any differences?
    b. How much variance is there in fees across plans for a similar 
investment option, and what factors might explain any such variance?
    4. To what extent do low- and middle-income families benefit from 
Section 529 savings plans and Section 529 prepaid tuition plans?
    a. How do the financial incentives for participation vary with 
family income?
    b. How does financial aid eligibility affect the financial 
incentives for participation?
    c. How are contributions, account balances, and tax benefits 
distributed across income groups?
    d. Controlling for initial family attitudes toward education, does 
having a Section 529 savings account increase the beneficiary's 
likelihood of attending college?
    e. Are state matching grants an effective means of encouraging 
Section 529 contributions from low- and moderate-income families?
    f. Are tax subsidies for saving the most cost effective way to make 
college

[[Page 37308]]

affordable for low- and middle- income families?
    5. Do prepaid tuition plans assess a reasonable premium in exchange 
for reducing participant risks with respect to investment returns and 
increases in the cost of attending college?

Alan B. Krueger,
Assistant Secretary for Economic Policy.
[FR Doc. E9-17916 Filed 7-27-09; 8:45 am]
BILLING CODE 4810-25-P