FOR IMMEDIATE RELEASE
Contact: Molly Cowan
Phone: 603 271-3077
Monday, August 8, 2006
CONCORD, NH – As sponsor and chair of New Hampshire’s first-in–the–nation tax-free college savings plan, the Unique Plan, State Senator Sylvia Larsen (D-District 15) today applauded Congress’ recent action making federal tax-exempt savings for college under the plan permanent.
One feature of the recently approved Pension Protection Act (H.R.4) that Congress passed just prior to adjourning, made the federal tax exemption for Section 529 plans permanent, rather than expiring in 2011. This means that people, who withdraw money from the plans to pay for their children’s college education on or after January 1, 2011, can count on the distributions from the plans to continue to be tax exempt.
“This is great news for families here in New Hampshire and across the country,” stated Senator Sylvia Larsen. “ Whether you are currently saving in a 529 plan, such as New Hampshire’s Unique Plan, or considering it for the future, it makes saving for college a little easier for families to plan for long-term.”
While New Hampshire was first to implement such a plan, all 50 states and the District of Columbia now have a Section 529 plan in operation. More than 9 million children across the country have been enrolled in a plan, representing more than $90 billion. New Hampshire was first to develop and implement a tax-free college savings plan, and the goal nationwide is to increase access to higher education by offering families a simple, affordable and dedicated way to save for college tuition and other college expenses.
For information about New Hampshire’s Unique Plan, go to www.nh.gov/treasury/Divisions Unique /Unique/ . For information about Section 529 plans nationwide go to www.collegesavings.org.