SYSTEMS AND METHODS FOR DETERMINING AN EARNINGS PORTION OF A DISTRIBUTION FROM A 529 PLAN
A method for determining an earnings portion of a distribution from a 529 plan. The method includes receiving information associated with a plurality of 529 plan accounts, identifying related 529 plan accounts, aggregating the information for related 529 plan accounts, and determining an earnings portion of a distribution from at least one of the 529 plan accounts.
1 . A method for determining an earnings portion of a distribution from a 529 plan, the method comprising:
identifying, using a computing device comprising at least one processor, related 529 plan accounts from a plurality of 529 plan accounts, wherein identifying the related 529 plan accounts includes identifying 529 plan accounts having a common beneficiary or identifying 529 plan accounts having a common owner/beneficiary combination;
receiving, with the computing device, information associated with the plurality of 529 plan accounts, including receiving for each 529 plan account:
a state plan identification number,
an owner identification number, and
a beneficiary identification number;
aggregating the information for related 529 plan accounts; and
determining, with the computing device, an earnings portion (EP) of a distribution from at least one of the related 529 plan accounts as:
EP
=
(
MV
-
(
C
-
ROI
)
MV
)
×
D
,
wherein MV is an aggregate market value of the related 529 plan accounts, C is an aggregate value of contributions to the related 529 plan accounts, ROI is an aggregate value of return of investment of the related 529 plan accounts, and D is an amount of the distribution.
2 . The method of claim 1 , further comprising receiving a social security number of at least one owner or at least one beneficiary.
3 . The method of claim 1 , further comprising receiving a starting position for each 529 plan account.
4 . The method of claim 1 , further comprising receiving for each 529 plan account:
a fair market value;
a value for life-to-date contributions; and
a value for life-to-date return of investment.
5 . The method of claim 1 , further comprising aggregating information for UGMA/UTMA accounts separately from information for non-UGMA/UTMA accounts.
6 . The method of claim 1 , further comprising determining a return of investment portion of the distribution.
7 . The method of claim 1 , further comprising determining when a maximum limit associated with a 529 plan account beneficiary is reached.
8 . The method of claim 1 , further comprising determining when an aggregate market value for related 529 plan accounts having a common beneficiary reaches a maximum value.
9 . The method of claim 1 , further comprising determining when an aggregate total for life-to-date contributions for related 529 plan accounts having a common beneficiary reaches a maximum value.
10 . A system for determining an earnings portion of a distribution from a 529 plan, the system comprising:
a processor in communication with at least one computer-readable medium storing information associated with a plurality of 529 plan accounts, wherein the processor is programmed to execute instructions for:
identifying related 529 plan accounts from the plurality of 529 plan accounts, including identifying 529 plan accounts having a common beneficiary or identifying 529 plan accounts having a common owner/beneficiary combination;
receiving information associated with the plurality of 529 plan accounts, including receiving for each 529 plan account:
a state plan identification number,
an owner identification number, and
a beneficiary identification number;
aggregating information for related 529 plan accounts; and
determining an earnings portion (EP) of a distribution from at least one of the related 529 plan accounts as:
EP
=
(
MV
-
(
C
-
ROI
)
MV
)
×
D
,
wherein MV is an aggregate market value of the related 529 plan accounts, C is an aggregate value of contributions to the related 529 plan accounts, ROI is an aggregate value of return of investment of the related 529 plan accounts, and D is an amount of the distribution.
11 . The system of claim 10 , wherein the processor is further programmed to execute instructions for receiving a social security number of at least one owner or at least one beneficiary.
12 . The system of claim 10 , wherein the processor is further programmed to execute instructions for receiving a starting position for each 529 plan account.
13 . The system of claim 10 , wherein the processor is further programmed to execute instructions for receiving for each 529 plan account:
a fair market value;
a value for life-to-date contributions; and
a value for life-to-date return of investment.
14 . The system of claim 10 , wherein the processor is further programmed to execute instructions for aggregating information for UGMA/UTMA accounts separately from information for non-UGMA/UTMA accounts.
15 . The system of claim 10 , wherein the processor is further programmed to execute instructions for determining a return of investment portion of the distribution.
16 . The system of claim 10 , wherein the processor is further programmed to execute instructions for determining when a maximum limit associated with a 529 plan account beneficiary is reached.
17 . The system of claim 10 , wherein the processor is further programmed to execute instructions for determining when an aggregate market value for related 529 plan accounts having a common beneficiary reaches a maximum value.
18 . The system of claim 10 , wherein the processor is further programmed to execute instructions for determining when an aggregate total for life-to-date contributions for related 529 plan accounts having a common beneficiary reaches a maximum value.
19 . A non-transitory computer-readable medium comprising instructions stored thereon, which when executed by a processor, cause the processor to:
identify related 529 plan accounts from a plurality of 529 plan accounts by identifying 529 plan accounts having a common beneficiary or identifying 529 plan accounts having a common owner/beneficiary combination;
receive information associated with the plurality of 529 plan accounts, including receiving for each 529 plan account:
a state plan identification number,
an owner identification number, and
a beneficiary identification number;
aggregate the information for related 529 plan accounts; and
determine an earnings portion (EP) of a distribution from at least one of the related 529 plan accounts as:
EP
=
(
MV
-
(
C
-
ROI
)
MV
)
×
D
,
wherein MV is an aggregate market value of the related 529 plan accounts, C is an aggregate value of contributions to the related 529 plan accounts, ROI is an aggregate value of return of investment of the related 529 plan accounts, and D is an amount of the distribution.