Fidelity Notes Sharp Rise in 529 Plan Assets

Fidelity Investments, which manages seven different 529 plans across the country, reported Sept. 17 that more than 100,000 new 529 college savings plan accounts were opened between September 2006 and August 2007. Contributions increased 22% to $2.4 billion over that time, while total 529 plan assets rose 59% to $13.5 billion.

Noting the boost that 529 plans got from the Pension Protection Act, Joe Ciccariello, VP of college planning for Fidelity Personal Investments, said in a statement that with "more than half of new account beneficiaries four years old or younger, it appears the new tax changes have increased interest in 529 plans and encouraged families to start saving earlier and contributing regularly to their accounts."