US2014067720A1PendingUtilityA1

Systems and methods for determining an earnings portion of a distribution from a 529 plan

Assignee: BNY MELLON DISTRIBUTORS HOLDINGS INCPriority: Oct 21, 2004Filed: Nov 11, 2013Published: Mar 6, 2014
Est. expiryOct 21, 2024(expired)· nominal 20-yr term from priority
G06Q 40/06G06Q 40/04G06Q 40/02
62
PatentIndex Score
0
Cited by
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0
Claims

Abstract

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.

Claims

exact text as granted — not AI-modified
What is claimed is: 
     
         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.

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