Company Launches New 529 Product

July 29, 2002 ( - Plan sponsors have a new alternative for researching and implementing an education savings plan for their workers.

401kid Inc., a Registered Investment Advisor (RIA) and financial software company that manages education savings plans (ESPs), has launched what the firm touts as the first ever web-based 529 plan product.

The 401kid ESP Wizard is delivered through an ASP (Application Service Provider) model and can be distributed through corporate portals, financial planners, insurance companies, banks, and schools, as well as directly to families via the firm’s website ( ).

401kid ESP offers a 529 Plan Due Diligence Guide to help employers and workers pick the college savings program suited for their needs.  401kid says that ESP can handle the burdens of administering multiple programs by aggregating all plans through one interface.

Individuals can pay a $50 annual subscription fee for a 401kid Gold Membership, which gives them access through my401kid home pages to advisory tools such as a Personalized Report and a 529 Plan Comparison Wizard.  Those tools offer insights on which 529 plans are best for an individual situation considering fees, expenses and tax deductions, the allocation of income and assets, as well as eligibility for educational grants, tax credits, and Coverdell ESA.