# Deposit Insurance Coverage; Accounts of Qualified Tuition Savings Programs Under Section 529 of the Internal Revenue Code
> **US Federal Deposit Insurance Corporation** · Interim final rule; request for comments. · Published 2005-06-09 · Effective 2005-06-09 · 70 FR 33689
## Document
- **Document number:** 05-11212
- **Category:** final-rule
- **Agency:** US Federal Deposit Insurance Corporation
- **Federal Register citation:** 70 FR 33689
- **CFR reference:** 12 CFR 330
- **Publication date:** 2005-06-09
- **Effective date:** 2005-06-09
## Abstract

The FDIC is revising its insurance regulations for accounts of qualified tuition savings programs under section 529 of the Internal Revenue Code. Qualified tuition programs that are savings plans or prepaid tuition plans may be established by states or state instrumentalities under section 529 of the Internal Revenue Code. Interests in qualified tuition savings programs are "securities" under the federal securities laws. Under the FDIC's existing insurance regulations, a state public instrumentality that issues securities is treated as a corporation for deposit insurance purposes. As a result, the deposits of the state public instrumentality are insured up to a total of only $100,000 in the aggregate. The deposits are not insured on a "pass-through" basis to the holders of the securities. Under the FDIC's new rule, the deposits of the state public instrumentality may be insured on a "pass- through" basis (i.e., up to $100,000 for the beneficial interest of each participant) if the deposits represent interests or accounts in a state public instrumentality that is part of a qualified tuition savings program under section 529 of the Internal Revenue Code.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2005/06/09/05-11212/deposit-insurance-coverage-accounts-of-qualified-tuition-savings-programs-under-section-529-of-the)
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