Savings Incentives and Prices: A Study of the 529 College Savings Plan Market

Posted: 17 Mar 2009

Date Written: March 16, 2009

Abstract

Despite the fact that 529 College Savings Plans have existed for over a decade, there has been limited scholarly attention on investment questions related to this savings vehicle. I analyze the market for 529 plans using a plan level panel data set of 529 College Savings Plan information covering the years 2002 - 2006. I find evidence of limited market competition and a positive relationship between state tax rates and 529 plan fees. A $100 increase in potential wage benefit from investing in a 529 plan is associated with a 3-5 basis point increase in fees for direct sold 529 College Savings Plans.

Keywords: 529 Plans, Fee Structure, Savings Incentives

JEL Classification: G10, G11, H24, I22

Suggested Citation

Bogan, Vicki L., Savings Incentives and Prices: A Study of the 529 College Savings Plan Market (March 16, 2009). Available at SSRN: https://ssrn.com/abstract=1361079

Vicki L. Bogan (Contact Author)

Cornell University ( email )

Warren Hall
Ithaca, NY 14853
United States
607-254-7219 (Phone)

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