Navigating your 529 options

529 college savings plan theme with textbooks and piggy bank
With so many 529 college savings plans out there, how do you know you’re choosing the right plan for your family? Use the questions and answers below as a guide to help you evaluate your options.

Does the plan offer tax benefits?

One of the first things to look for is whether your home state’s 529 plan offers tax benefits for you or your beneficiary if you use that plan. For example, Edvest is Wisconsin’s Official 529 College Savings Plan. Wisconsin residents who save with Edvest may be eligible for these benefits:

  • Reduce their state taxable income by $3,100 per beneficiary per tax year
  • Any account earnings may grow free from state and federal income taxes
  • State and federal tax-free withdrawals when used for qualified expenses

Learn more about Edvest’s tax advantages on Edvest.com.

What fees are associated with the plan?

Most 529 plans have some fees associated with them. However, the type and amount of fees are not always the same from one plan to the next. A 529 plan with low fees helps make saving for college more affordable for more families. Low-fee plans not only save your family money, they also keep more of the money you save going directly to your savings goal.

Edvest was recently ranked the 529 plan with the 4th lowest fees in the nation by Strategic Insight. Learn more about the ranking here.

Are there a variety of investment options?

There’s no one right way to save. The number of years you have to save before your child reaches college, your personal risk tolerance, and family budget all play a role in how your family saves.

Look for a 529 program that offers a variety of investment options. That will help you find the plan that best matches your unique situation. Edvest offers a variety of options including age-based options, multi-fund options, single-fund options, and stable principal options.

How will the plan help me reach my savings goals?

Before you choose a plan, think about how you’ll use it. It’s a good idea to look at the tools available to help you manage your savings. For example, if you want to make your contributions and manage your account online, make sure the plan you are choosing has the option. Some other helpful features to look for include:

  • Gifting options – can friends and family contribute to the account?
  • Payroll deduction – can you contribute directly from your paycheck? What is the minimum amount required?
  • Tools and resources – how easy is it to get your questions answered?

Taking a little time to learn more about the 529 savings plan options available can ensure you’re making a decision you and your family can feel good about.