Systems and methods for determining an earnings portion of a distribution from a 529 plan
View Patent ↗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; 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.
2. The method of claim 1 , comprising receiving information associated with the plurality of 529 plan accounts.
3. The method of claim 1 , comprising aggregating the information for related 529 plan accounts.
4. The method of claim 2 , comprising receiving the information from a plurality of sources.
5. The method of claim 2 , comprising receiving for each 529 plan account:
a state plan identification number;
an owner identification number; and
a beneficiary identification number.
6. The method of claim 5 , comprising receiving a social security number of an owner.
7. The method of claim 5 , comprising receiving a social security number of a beneficiary.
8. The method of claim 2 , comprising receiving a starting position for each 529 plan account.
9. The method of claim 8 , 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.
10. The method of claim 1 , comprising identifying 529 plan accounts having a common beneficiary.
11. The method of claim 1 , comprising identifying 529 plan accounts having a common owner and beneficiary combination.
12. The method of claim 3 , comprising aggregating the information for UGMA/UTMA accounts separately from the information for non-UGMA/UTMA accounts.
13. The method of claim 12 , comprising aggregating the information for 529 plan accounts having a common beneficiary.
14. The method of claim 12 , comprising aggregating the information for 529 plan accounts having a common owner and beneficiary combination.
15. The method of claim 1 , comprising determining a return of investment portion of the distribution.
16. The method of claim 1 , comprising determining when a maximum limit associated with a 529 plan account beneficiary is reached.
17. The method of claim 16 , comprising determining when an aggregate market value for 529 plan accounts having a common beneficiary reaches a maximum value.
18. The method of claim 16 , comprising determining when an aggregate total for life-to-date contributions for 529 plan accounts having a common beneficiary reaches a maximum value.
19. A system for determining an earnings portion of a distribution from a 529 plan, the system comprising:
a processor in communication with a first computer-readable medium storing information associated with a plurality of active 529 plan accounts, wherein the processor is responsive to instructions stored on a second computer-readable medium of the system to:
identify related 529 plan accounts from the plurality of 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.
20. A 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; 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.
21. The computer-readable medium of claim 20 , comprising instructions stored thereon, which, when executed by the processor, cause the processor to determine when a maximum limit associated with a 529 plan account beneficiary is reached.
22. A method for determining an earnings portion of a distribution from a 529 plan, the method comprising:
receiving information associated with a plurality of active 529 plan accounts, wherein receiving information includes receiving the following 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;
identifying, using a computing device comprising at least one processor, related 529 plan accounts, wherein identifying related 529 plan accounts includes identifying 529 plan accounts having a common beneficiary or having a common beneficiary and owner;
aggregating, using the computing device, the information for related 529 plan accounts; and
determining an earnings portion of a distribution from at least one of the 529 plan accounts.
23. A system for determining an earnings portion of a distribution from a 529 plan, the system comprising:
a first computer-readable medium comprising a database to store information associated with a plurality of active 529 plan accounts, wherein the stored information for each 529 plan account comprises:
a fair market value;
a value for life-to-date contributions; and
a value for life-to-date return of investment; and
a processor in communication with the first computer-readable medium, wherein the processor is responsive to instructions stored on a second computer-readable medium of the system to:
receive the information associated with a plurality of 529 plan accounts from the database;
identify related 529 plan accounts by identifying 529 plan accounts having a common beneficiary or having a common beneficiary and owner;
aggregate the information for related 529 plan accounts; and
determine an earnings portion of a distribution from at least one of the 529 plan accounts.