Does anyone know whether 529 Plan deposits are NOW account eligible? My understanding is that a 529 Plan Trustee makes the deposits on behalf of participants. The participants may be trusts, inviduals, and even corporations, but all are acting on behalf of beneficiaries that are individuals. Any thoughts would be appreciated.

Sec. 204.130 Eligibility for NOW Accounts.

(a) Summary. In response to many requests for rulings, the Board has determined to clarify the types of entities that may maintain NOW accounts at member banks.

(b) Individuals.

(2) Pension funds, escrow accounts, security deposits, and other funds held under various agency agreements may also be classified as NOW accounts if the entire beneficial interest is held by individuals or other entities eligible to maintain NOW accounts directly. The Board believes that these accounts are similar in nature to trust accounts and should be accorded identical treatment. Therefore, such funds may be regarded as eligible for classification as NOW accounts.