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Edvest shines spotlight on college savings
This May Edvest joins with 529 plans across the country to celebrate National 529 Day, a day created to raise awareness of the importance of saving for college and celebrate the many ways that families can prepare for the rising cost of higher education. Named for Section 529 of the Internal Revenue Code, “qualified tuition program” 529 plans were designed to make it easier for families to save for college.
As families plan for college, here are some important facts to consider:
- $393. The average monthly student loan payment. (“A Look at the Shocking Student Loan Debt Statistics for 2019”, studentloanhero.com). Graduates who spend a significant amount of their monthly budget to repay student loans often must delay things such as starting a business, purchasing a new car, saving for a down payment on a home, etc. Saving early and making regular contributions can often improve your child’s quality of life post-graduation.
- Saving with Edvest pays off even before college starts. Wisconsin families that save with Edvest can potentially deduct up to $3,280 per beneficiary per year ($1,640 for single filers) on their state taxes. Limitations apply.* Families with more than one account may be eligible for a state tax deduction of up to $6,560 for two children, $9,840 for three children, and so on.
- Everyone can help! Most parents can’t cover 100 percent of their child’s college education, which is why Edvest makes it easy for others to help contribute to an open account – making supporting a child’s future educational goals a win-win for everyone. In addition to helping an account grow faster, in certain cases, the contributor may also be eligible for state tax benefits or to incorporate the gift into their overall estate and legacy planning. Even Wisconsin employers can contribute to employee Edvest and potentially receive a state tax credit.
This 529 Day celebrate by opening an Edvest account for the future college graduate in your life. Edvest funds can be used for tuition and other qualified expenses, such as room and board, books, computers, tablets and much more at universities, colleges and technical colleges across the country. When it’s time to pay for college, you can withdraw money from Edvest tax free when used for qualified expenses.
*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. 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. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein. 837209