Archimedes Systems, Inc.

Dynamic New Archimedes Tool Helps Financial Advisors Evaluate 529 College Savings Plans

Wednesday, 21 October 2009 13:38

FOR IMMEDIATE RELEASE

Waltham, MA – October 2009 – Helping clients decide which 529 savings plans best suit their needs can be a complex challenge.  The 529 State Tax & Fee Evaluator© is now available to help advisors estimate the impact of fees and state tax deductions on potential 529 plan choices.

According to Mary Nickeson, Director, College Planning Solutions at Archimedes Systems, “the 529 State Tax and Fee Evaluator helps answer some important questions.  For example: Tax advantages vary from state to state.  Some states offer an income-tax deduction for any 529 plan contribution, others only for contributions to their state-sponsored plan.  The tool helps sort this out.”

Although a state tax deduction can be valuable, it is just one of many factors to consider.  Fees and expenses, the size and frequency of plan contributions, the client’s investment horizon, and the client’s income tax rates can determine how valuable a tax deduction might be.

Nickeson points out that the 529 State Tax & Fee Evaluator “helps clients understand the potential economic value of the state tax deduction, the maximum annual deduction, and whether contributions in excess of the maximum annual state tax deduction may carry forward to future years. After fees and expenses are considered, the tool estimates how many additional basis points would be needed to bring one account in line with another.”

Fees and expenses for 529 plans can affect investment returns and the benefit of the client’s state tax deduction.  Archimedes’ 529 State Tax & Fee Evaluator is supported by an extensive database covering 529 state tax deduction and credits, state income tax rates, plan fees & expenses, and other key data points.  The tool’s lookup functionality automatically provides the fee input fields for the plans being compared – and contains links to the official plan offering documents.

About Archimedes
Archimedes is a leading provider of web-based college planning, retirement planning, personal finance and personalized communication tools and services that inform, educate, and motivate employees, participants, advisors and individuals.  Archimedes’ tools help consumers increase their confidence as they make savings and investing decisions.

Since 1991, Archimedes has been providing services and designing, building, and hosting customized applications for Fortune 500 and other clients.  For more information, visit www.archimedes.com or call 781-647-1110.