Tax Time and Super Funding

It’s Not Too Late! Take Advantage of Edvest’s Tax Time Benefits Today.

Although the April 18th tax deadline is quickly approaching, you still have time to contribute to an existing Edvest College Savings Plan account or open a new account to be eligible for a state tax deduction of up to $3,100 per child. Limitations may apply. See Plan Disclosure Booklet.

Enjoy Significant Tax Benefits while Saving for College!

Wisconsin residents, regardless of their relationship to a child, can reduce their state taxable income up to $3,100 per beneficiary per year. Meaning that if you have accounts for two of your children or grandchildren you may be eligible for a state tax deduction of up to $6,200. Three accounts… $9,300 and so on.

Plus, Edvest investment earnings grow tax-deferred and are tax-free at both the state and federal level when used to pay for qualified college expenses.

Carry Forward for Future Tax Benefits

Are you rolling over balances from another 529 plan or plan to make a large contribution from savings, inheritance or bonus? If your contributions are greater than the maximum state tax benefit, you may carry forward the balance until exhausted.

Want to Really Build your College Savings? Super Fund.

You might find you want to make a larger donation to a child’s account but you’re hesitant to commit. What will it mean for you during tax time? What are the implications to your estate? Don’t worry, you can give with confidence and it won’t adversely impact your tax situation. In fact, there’s no federal gift tax on contributions up to $14,000 per year for single filers and $28,000 for married filers.

If you wish to make a larger contribution, there’s an option to gift amounts up to $70,000 for single filers and up to $140,000 for married filers if pro-rated over 5 years. This means you could make a one-time gift equivalent to the 5-year amount and it could all qualify for the federal gift tax exclusion. Consult your tax advisor.

Why Save with Edvest?

As the cost of higher education continues to rise, it is important to start saving early. Today, $351 is the average monthly student loan payment for an American adult borrower, ages 20-30. $351.* The good news, however, is that, one dollar in college savings is worth about $2 of student debt, proving what many of us already know: it’s cheaper to save earlier than to pay debt later.

Saving makes a difference and Edvest makes it easy to do just that. Funds saved through Edvest can be used at colleges, technical schools and grad schools nationwide. Plus, funds may be used for books, supplies, or other qualified expenses – not just tuition. To learn more, visit Edvest.com or call 1-888-338-3789.

And remember, any Edvest account opened and funded before April 18, 2017 may still be eligible for 2016 tax benefits!

*Source: “Is there a student loan crisis? Not in payments.”, Forefront, May 16, 2016.

 

To learn more about the Wisconsin’s College Savings Plan, its investment objectives, tax benefits, risks, and costs please see the Disclosure Booklet at edvest.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. If the money isn’t used for qualified higher-education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply.  Check with your home state to learn if it offers tax or other benefits for investing in its own 529 plan.

Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances.