With the passage of the 2006 Pension Protection Act in August and the President’s signing of the Act, the tax treatment of 529 Plans, originally set to expire in 2010, has been made permanent.
The long-sought-after 529 tax permanency provision removes the uncertainty surrounding the tax treatment of 529 plans after the year 2010 and provides college savers using 529 plans with unique tax benefits going forward. The Pension Protection Act does not help Coverdell Education Savings Accounts (ESAs), which are still facing a 2010 sunset of tax benefits contained in the 2001 EGTRRA.
In addition to the above change, this act also provides the IRS with the authority to develop regulations to prevent taxpayer abuse of 529 plans. This is to address concerns raised by the Treasury Department that 529 plans might be used for non-education funding purposes.
Click the link to pick up a copy of An IRA Owner's Manual or if you'd prefer the Kindle version (and let's face it, ALL the cool kids do!), you can find that at this Kindle version link.
I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 25 years of experience in the industry. Read more from this author
My other book, 
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".
This is great news. No longer I have to worry about tax breaks and expiration of 529 plans. In general, I also visit http://www.plans529.com to get latest news regarding 529 plans and college savings.