Hassle-Free Way for Businesses to Help Employees Save for College
Edvest, is excited to celebrate National 529 Day – a day dedicated to raising awareness about the importance of saving for college – by announcing that Edvest now offers enhanced tools available for employers who offer Edvest as part of their benefits package.
Currently in use among the state’s largest employers, the University of Wisconsin System and the State of Wisconsin, the enhanced tools and resources are available to all Wisconsin businesses, associations, technical colleges, municipal governments and school districts at no charge.
“National 529 Day highlights the importance of saving for college and serves as a reminder for families that now is the time to get started,” said Jessica Fandrich of the Wisconsin Department of Financial Institutions, and Officer for the Wisconsin 529 College Savings Program. “Employees today are looking to their employer to help manage their education savings goals. Providing the option to contribute to Edvest via payroll direct deposit makes saving for college effortless for the employee and is a great way for employers to differentiate their benefits package to attract and retain a talented workforce.”
Funds saved through Edvest can be used for higher education expenses, such as tuition and fees, room and board, books, computers and related technology at colleges, universities, technical colleges, graduate schools and certificate programs nationwide. No matter where your child chooses to attend school, their Edvest funds will go with them. Additionally, Wisconsin residents who contribute to an Edvest account may be eligible for a state tax deduction of up to $3,200 per beneficiary for the 2018 tax year. Limitations apply*.
Employee Perk with Staying Power
As Wisconsin companies compete to recruit and retain talent, offering Edvest as part of the employee benefits package can give companies a serious edge.
It not only signals that a company is invested in the financial future of its employees and their families, but it may also help employees save more. Recent studies have shown that parents with children under the age of 18 who have a college savings plan save 76 percent more than parents who also save, but do not have an official plan.
New Tax Credit for Wisconsin Employers
Businesses that contribute to their employees’ Edvest accounts may be eligible for a state tax credit. Employers may receive a tax credit equal to 25% of the contributions that the employer makes up to a maximum tax credit of $800 for 2018 (adjusted annually for inflation) per employee per tax year. Employers should consult a tax advisor regarding the availability and ramifications of this credit.
HR professionals, benefits managers and business owners can learn more at Edvest.com/benefit. There they can access the Edvest Employer Payroll Guide to get started, as well as other tools to help promote the benefit to employees.
In addition to significant tax benefits, Edvest has received numerous accolades from industry-leading sources. SavingforCollege.com recently ranked Edvest as one of the Top 10 in five-year 529 Performance and awarded the program a 5-Cap Rating for the fourth consecutive year.
For more information about Edvest for Wisconsin employers, visit Edvest.com/benefit. Edvest’s college savings specialists also are available Monday through Friday 7 a.m. to 7 p.m. CST toll-free at (888) 338-3789.
*Limitations apply. 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 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 such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice, 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. 424004
“How America Saves for College 2016,” Sallie Mae, 2016, accessed May 2017, https://salliemae.newshq.businesswire.com/sites/salliemae.newshq.businesswire.com/files/doc_library/file/HowAmericaSaves2016_FINAL.pdf
22018 Plan Performance Rankings Q1, Savingforcollege.com, 3/31/2018. **Savingforcollege.com, March 2, 2018.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