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Products August 3, 2002
CIGNA Unveils 529 Plan for 401(k) Clients
March 8, 2002 (PLANSPONSOR.com) - Employees of
companies who have their retirement plans with CIGNA
Retirement & Investment Services will also soon have a
new option in saving for a child's college tuition.
Reported by Fred Schneyer
That’s because CIGNA has unveiled CollegeBoundfund, a 529 college savings plan available to companies with their retirement plans at CIGNA.
According to CIGNA’s announcement, investors will have six investment choices in the new plan:
- an aggressive growth portfolio
- a growth portfolio
- a balanced portfolio
- a fixed-income/money market portfolio
- two age-based portfolios – one targeting growth and the other aggressive growth. CIGNA will automatically adjust the asset allocation of equities, fixed income and money market investments as the person ages.
According to the CIGNA announcement, in addition to the fact that the account will grow on a tax-deferred basis, plan assets can be used at any accredited US university or college as well as some foreign schools.