I want to sponsor a 529 savings plan for my son. Where can I get a &qu

[Moe Howard]

I want to personally set up a 529 plan for my son's college education expenses. I'll be the sponsor and trustee. I'll hire an attorney to set up a trust. The trust will be named "Sec 529 Plan for Moe Howard, Jr". My family and I will make contributions to the trust. I'll choose the investments. I'll do all the accounting for the trust & I'll keep up with how $much of the trust's assets are owned by each contributor. The contributors will get full benefit of all income and gift tax breaks allowed under IRC 529. I'll get the trust an EIN and I'll make sure that contributors are informed that earning withdrawls not used for college education expenses are taxable.

In other words, I'll set up the plan myself and not use a "state-sponsored plan".

My Ouestion:

Where can I get a generic "529 plan document" to use as a guide in designing my 529 plan document? .... and does the IRS have to approve my plan document (do I have to request something like a determination letter ?).

Do I need to get permission from my state ?

**************************************************

This is not a nonsense question. I actually have clients that want to do this. I have told them that only a state can sponsor a 529 plan and that although banks, insurance companies, brokers, and others can sell mutual funds (on behalf of state sponsored 529 plans) .... no bank, insurance company, broker, or other individual can SPONSOR a 529 plan.

Am I right or wrong? I can't find this in IRC 529. Does anyone know what sentence in IRC 529 says that a 529 plan can only be sponsored by a state ?

THANKS

***************************************************

[Guest pineapple]

Sorry Moe, but unless your clients are either (1) a State or agency or instrumentality thereof or (2) an eligible educational institution, they can't establish or sponsor a 529 plan. See Code section 529(B)(1) and 529(e)(5).

[Guest kabmaxx]

I work for an employer in the State of CT that is interested in offering a 529 plan for employees through payroll deductions. I know that ADP offers a 529 product and Morgan Stanley (401k investment provider) but I wondered what other companies were doing, if anything, and how to offer the best plan (low cost, easy to implement, flexible platform, solid investments, etc.). Any advice would be greatly appreciated.