4LAKids - some of the news that doesn't fit: CALIFORNIA’S 529 COLLEGE SAVINGS PLAN TO BE REVAMPED

4LAKids - some of the news that doesn't fit: CALIFORNIA’S 529 COLLEGE SAVINGS PLAN TO BE REVAMPED

CALIFORNIA’S 529 COLLEGE SAVINGS PLAN TO BE REVAMPED

Fidelity Investments will no longer manage California's 529 college savings plan, which will get new investment options and a new administrator.

BY WALTER HAMILTON, LOS ANGELES TIMES | HTTP://LAT.MS/ISCFEG

FROM THE SEC: HTTP://1.USA.GOV/W462S What is a 529 plan? A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

June 11, 2011 - California's 529 college-savings plan is about to get a major overhaul.

Fidelity Investments, the mutual fund giant that has administered the plan since 2006, has dropped out of the running to keep managing it, and a state board will meet Monday to pick a new firm.

The changeover will lead to a complete revamping of the plan, including a new slate of investment options.

A number of states have changed 529 providers in recent years in response to criticism that their plans were weighed down by excessive costs and weak investments.

The state board responsible for California's ScholarShare plan sought bids from outside providers in March. Fidelity, which manages 529 plans in four other states, did not