Total 529 savings plan assets hits $180.3 billion at the close of the first quarter, up from $168.5 billion in the four quarter, according to a new report.
Financial Research Corp., a Boston-based division of Strategic Insights, discloses this finding in a first quarter 2013 report on IRC section 529 college savings plans. The report is based on year-over-year highs in assets under management and investor usage of 529 plans.
The report records net flows (contributions minus withdrawals) during the first quarter of $3.3 billion. This is up from a net flow of $3.1 billion in the fourth quarter and a net outflow of $0.8 billion in the third quarter of 2012.
The first quarter result is the highest recorded by FRC since the first quarter of 2011, when net flows last reached $3.3 billion. The result further indicates that "investors are successful using 529 plans for their intended purpose of savings and spending their savings on qualified higher education expenses," the report states.
