The Markets February 10, 2025

2024 Sees Net Inflows of $3.1B to 529 Tuition Savings Plans

A provision of the SECURE Act 2.0 of 2022 that permits certain assets saved for education to be rolled over into retirement accounts is expected to broaden the appeal of tax-advantaged tuition savings plans in coming years.

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College savings plans, known as 529 tuition savings plans, continued to show asset growth and net flows in 2024, with these accounts reaching $3.1 billion in the fourth quarter of 2024, according to recent data from ISS Market Intelligence. A provision of the SECURE Act 2.0 of 2022 that permits certain assets saved for education to be rolled over into retirement accounts is expected to broaden the appeal of tax-advantaged tuition savings plans in coming years.

The year-end 2024 inflows represent an increase from Q4 2023 net inflows, which were $2.1 billion, and Q4 2022 net inflows of $1.5 billion.

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529 plans accumulate contributions in tax-advantaged accounts that can be invested in and used to pay for the qualified education expenses of the beneficiary. SECURE 2.0 also allows certain assets in a 529 plan maintained for at least 15 years for a designated beneficiary to be rolled over on a tax-free basis to a Roth IRA for the same beneficiary.

The increase in accumulated assets aligns with continued demand for 529 accounts and an increasing number of parents successfully using them for the intended purpose of paying qualified educational expenses, according to data collected by ISS Market Intelligence, which, like PLANSPONSOR, is owned by ISS STOXX.

Student loan debt in the U.S. totaled $1.773 trillion, as of January 15, according to the Education Data Initiative, and 529 plans provide an opportunity for families to help their children avoid student debt in the future.

ISS Market Intelligence data found that, as of December 2024, Americans had opened 16.1 million 529 accounts and invested $500 billion in assets in those savings plans. The data also showed that there are also $2.3 billion in assets invested in 195,542 Achieving a Better Life Experience accounts. ABLE accounts are tax-advantaged savings accounts that benefit people with disabilities.

“The overall outlook for 529s continue to brighten, and especially with the expansion of qualified expenses to certain types of qualified distributions from 529s to Roth IRAs,” wrote Paul Curley, director of 529 and ABLE research at ISS Market Intelligence, in the report. “As 529s broaden from a product for education financial planning to retirement financial planning in 2024 and continuing into 2025, we expect new positive energy by new stakeholders to drive growth over the next three to five years.”

The five largest 529 savings plans by Q4 2024 assets were:

  1. CollegeAmerica 529 Savings by American Funds: $94.7 billion
  2. New York 529 Direct by Vanguard: $43.9 billion
  3. Vanguard 529 by Vanguard: $37.7 billion
  4. My529 by State of Utah: $25.2 billion
  5. UNIQUE College Investing Plan by Fidelity: $22.7 billion

In addition, the five savings plan program managers with the most Q4 2024 assets were:

  1. Ascensus: $136.6 billion
  2. American Funds: $94.7 billion
  3. TIAA: $59.5 billion
  4. Fidelity: $46.9 billion
  5. State of Utah: $25.2 billion
Deals & People February 7, 2025

Retirement Industry People Moves – 2/7/25

Newfront Retirement Services adds associate vice presidents; CFP Board announces CEO Keller to retire in 2026; Focus Financial Partners names new CFO; Wagner Law Group welcomes a new partner; and more.

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Newfront Retirement Services Adds 2 Associate Vice Presidents

Matt Vallejo and Brandon Buckley joined Newfront Retirement Services as associate vice presidents. Vallejo brings expertise from a previous role at Fidelity Investments, while Buckley joins from Salesforce. Both will participate in Newfront’s mentorship program, pairing 1:1 with the company’s most successful, award-winning advisers, notes Greg Kaplan, practice leader of Newfront Retirement Services.

“Matt and Brandon are outstanding top performers who consistently push boundaries and drive innovation. We’re thrilled to have them on board, delivering exceptional results for our clients and plan participants,” says Kaplan.

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CFP Board Announces CEO Keller to Retire in 2026

Kevin R. Keller will retire as CEO of the CFP Board on April 30, 2026, the CFP Board announced. Keller has served in the role for nearly two decades.

The board of directors has initiated a planned succession process to ensure a smooth leadership transition. It has established a search committee and will engage an executive search firm later this year to assess internal candidates and conduct a national search.

“Kevin’s visionary leadership has transformed CFP Board and the financial planning profession,” said Liz Miller, chair of the board of directors. “Under his stewardship, CFP Board has achieved unprecedented growth and awareness while elevating the standards of the financial planning profession. The organization is well-positioned for its next chapter of leadership and continued success.”

Focus Financial Partners Names Jason Dubinsky Chief Financial Officer

Advisory network Focus Financial Partners Inc. announced that Jason Dubinsky will join Focus as its new chief financial officer, effective March 10, and will also join Focus’ operating committee. Most recently, he served as the CFO of Morningstar Inc. from 2017 through 2024.

James Shanahan will retire as chief financial officer and serve as a consultant to the company through the fall of 2025 to ensure a smooth transition.

“We are pleased to welcome Jason as our new Chief Financial Officer during such an exciting phase of growth and transformation for Focus,” said Michael Nathanson, the Focus CEO. “His valuable perspective, deep skill set, partnership approach, and track record for delivering results will complement and enhance Focus’ leadership team as we continue to progress on our journey to be the leading fiduciary advice company in the world.”

Partner Joins Wagner Law Group

Eric Keller

Wagner Law Group announced that Eric Keller has joined the firm’s Washington, D.C. office as a partner in its employee benefits and executive compensation practice.

For more than 25 years, Keller has focused his practice on executive compensation, employee benefits and workforce restructuring matters. Keller also maintains a broad-based practice representing domestic and international clients on executive compensation, tax-qualified retirement plans, health and welfare plans, and workforce restructuring matters.

He also designs and prepares plan documents and participant communications, negotiates service-provider contracts and assists clients in developing and operating efficient and prudent plan administration practices.

Shapiro Joins Venable’s Employee Benefits and Executive Compensation Practice

Andrew Shapiro

Venable LLP announced that Andrew Shapiro has joined the firm as a partner in the employee benefits and executive compensation practice.

Shapiro counsels public and private companies, as well as senior executives, on a broad spectrum of executive compensation and employee benefits matters. His practice includes designing and implementing incentive compensation, deferred compensation, employment, retention, change-in-control, severance and other compensatory and benefits arrangements.

“Andrew is a skilled employee benefits attorney who brings experience in a wide range of executive compensation and employee benefit matters,” said Juliana Reno, chair of the firm’s employee benefits and executive compensation practice. “We are thrilled to welcome him to our team in New York.”

Pacific Life Announces Promotions

Karen Neeley

Pacific Life Insurance Co. announced the promotion of Karen Neeley to senior vice president of its institutional retirement solutions group and Patricia Thompson to senior vice president and chief compliance and ethics officer.

Neeley will oversee the management and growth of the pension risk transfer and defined contribution lifetime income businesses, including responsibility for distribution, product development, operations and customer engagement.

Patricia Thompson

Thompson will oversee all compliance, ethics and privacy activities across the enterprise, including the maintenance and oversight of the code of conduct, ethics helpline and ensuring alignment with international data privacy laws and regulations.

Pantheon Announces Leadership Transitions

London-based Pantheon Ventures LLP named Kathryn Lead, who has played a role in the firm’s strategic development and led the firm’s real assets investment strategies, as CEO, succeeding Paul Ward, who is now executive chairman. Jeff Miller was elevated to CIO and also serves as global head of private equity.

In addition, the firm announced three new partner promotions across different areas of the business:

  • Janice Ince was promoted to partner in Pantheon’s global infrastructure team, where she focuses on identifying and executing a wide range of infrastructure investments in the U.S.;
  • Iain Jones was promoted to partner in Pantheon’s investor relations team, focused on existing relationships and business development in the U.S.; and
  • Marc Melia was promoted to partner in the legal and compliance team, where he also serves as European head of legal. Melia has responsibility and oversight for a broad range of functions, including product structuring.

New York Life Announces Head of New York Life Real Estate Investors

Thomas O’Hanlon

New York Life Investment Management LLC announced an upcoming leadership transition in New York Life Real Estate Investors. At the end of June, current Managing Director Thomas O’Hanlon will become head of NYLREI when Senior Managing Director Mark Talgo, the current NYLREI head, retires.

O’Hanlon will continue to serve in his current capacity as head of real estate equity well. He will report to New York Life Executive Vice President and CIO Tony Malloy and join Malloy’s senior leadership team.

O’Hanlon joined New York Life in 2004 as an acquisitions officer. In 2010, when New York Life’s general account began investing in real estate equity, he helped build NYLREI’s portfolio management and transactions teams. Over the next decade, O’Hanlon held roles of increasing responsibility, including head of transactions. He became head of real estate equity in 2019.

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