But there’s still time to impact your 2017 Wisconsin taxes! Act by April 17, 2018.
Between everyday expenses and personal spending, it can be difficult to decide when and how to start a college fund for your child. But, with recent tax changes and an Edvest account, your money can go further when it comes to saving for college.
Edvest is excited to announce that the 2018 state tax benefit has been raised to $3,200 – making it even easier to save for college while enjoying significant tax benefits. The updated reduction in taxable income applies to contributions made during the 2018 tax year.
For the 2017 tax year, plan participants have until Tuesday, April 17, 2018 to make contributions to be eligible for a tax benefit of up to $3,140. Limitations apply.*
“The increase in the tax benefit is one more reason saving for college with the Wisconsin College Savings Program is a great decision for families,” said Jessica Fandrich, officer for the State of Wisconsin 529 College Savings Program, Department of Financial Institutions. “We’re proud to offer this opportunity for our Wisconsin account holders, and look forward to continuing to help families save more while they’re saving for college.”
What this means for current account holders:
Under the revised tax benefit, Wisconsin residents, regardless of their relationship to the child, may be eligible to reduce their state taxable income by up to $3,200 per beneficiary per year ($1,600 for single filers).
Families with more than one account may be eligible for a state tax deduction of up to $6,400 for two children, $9,600 for three children, and so on. Limitations apply.*
Carry forward for future tax benefits:
If your family rolls over balances from another 529 plan, or wants to make a large contribution from separate savings or possibly a work bonus, you have the option to apply those contributions to future tax returns.
In addition, if your annual Edvest contributions exceed $3,200 per beneficiary, you are eligible to carry those savings forward until the balance is gone.
Accelerate your college savings:
One way to keep pace with rising college costs is to super fund your college savings plan. Currently, there is no federal gift tax on contributions up to $15,000 per year for single filers and $30,000 for married filers.
For larger contributions, there is an option to gift amounts of up to $75,000 for single filers and up to $150,000 for married filers if pro-rated over five years.
However, it is recommended to consult your financial planner, tax attorney or estate planning attorney.
With so many options when it comes to college savings programs, why should you choose Edvest? To answer that question, it helps to look at what industry-leading sources say about Edvest and its services.
SavingforCollege.com recently ranked Edvest as one of the Top 10 in one- and three-year 529 Performance, and awarded the program a 5-Cap Rating for “outstanding flexibility, attractive investments and additional economic benefits” (SavingforCollege.com, What the Ratings Mean, 12/22/2017). Also, Edvest received a Bronze rating from Morningstar, Inc.
Simply put, saving early makes a difference and Edvest makes it easy.
For more information about Edvest or to open an account, visit Edvest.com. Edvest’s college savings specialists also are available Monday through Friday 7 a.m. to 7 p.m. toll-free at (888) 338-3789.
12017 Plan Performance Rankings Q3, Savingforcollege.com, 12/8/2017. Edvest ranking is based on a performance score calculated by investment performance for 51 direct-sold 529 plans (1-year ranking) and 48 direct-sold 529 plans (3-year ranking). The Savingforcollege.com plan composite rankings are derived using the plans’ relevant portfolio performance in seven unique asset allocation categories. The asset-allocation categories used are: 100 percent equity, 80 percent equity, 60 percent equity, 40 percent equity, 20 percent equity, 100 percent fixed and 100 percent short term. The plan composite ranking is determined by the average of its percentile ranking in the seven categories. Past performance does not predict future results.
2Savingforcollege.com, July 12, 2017.The Edvest College Savings Plan received a 5-Cap Rating for Wisconsin residents and 4.5-Cap Rating for non-residents. A 5-Cap Ratings represents the attractiveness of a 529 plan, relative to all other 529 plans, by assigning an overall rating to each 529 program ranging from 1 Cap (least attractive) to 5 Caps (most attractive). 5-Cap Ratings represent an assessment based on many considerations such as flexibility, liquidity and availability, ownership rights, state benefits, investment approach and safety, program resources and financial aid impact. It is not strictly a measure of historical returns, and it is not a predictor of future investment performance, level of investment risk or financial solvency of the program funds. These ratings are not the result of a fixed formula and a significant portion of the analysis is subjective. Before establishing a 529 account and making contributions, it is imperative that investors read and understand all enrollment materials and disclosures from the programs.
3In an annual review (10/24/2017) of the largest 529 college-savings plans (62 total), Morningstar identified 34 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2017. These forward-looking, qualitative ratings signal Morningstar’s conviction in the plans’ abilities to outperform their relevant benchmark and peer groups on a risk-adjusted basis over the long term. Morningstar evaluates college-savings plans based on five key pillars – Process, Performance, People, Parent, and Price. For more information about Morningstar’s overview of Edvest go to 529.morningstar.com/edvest. Past performance does not predict future results. Source: morningstar.com/news
*To learn more about the Wisconsin 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 funds aren’t used for qualified 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 such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances, including the impact of the new federal tax changes.
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for the Wisconsin College Savings Plan.
Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein. All social media platforms are managed by the State of Wisconsin.