The 529 plans, named for a section in the Internal Revenue Service code, let participants put away money to help defray costs of higher education. Plan assets accumulate on a tax-deferred basis and qualified withdrawals are eligible for favorable tax treatment.
Many 529 plans welcome non-residents and allow contributions to be used toward out-of-state college tuition and expenses.
SunGard can handle both prepaid-tuition and college-savings plans, the company said.
SunGard Unveils Electronic Locked Box Product
In other SunGard news, the company also recently unveiled LockBox — a secure, interactive, online document delivery and storage and communications system. The company said LockBox can be integrated into any existing Internet application.
The new application allows plans to deliver documents such as statements, trade confirmations and prospectuses to participants in a secure environment. In addition, participants can store their own records online and share them with others.
Information is organized and filed into individual private eFolders. Users can grant controlled guest access such as to a CPA, lawyer, or family member.