Edvest 529 Celebrates College Savings Month with Helpful Tips on How to Save for Higher Education
published September 1, 2023
Madison, Wis. (September 1, 2023) — September may be back to school for many families, but did you know it’s also College Savings Month? Celebrated throughout September, College Savings Month aims to encourage families to save for higher education and learn about the benefits of doing so with a 529 plan.
If you haven’t started saving for your loved one’s college or career training yet, that’s okay! This is a great time to make a plan. In honor of College Savings Month, Edvest 529 is sharing six tips to help Wisconsin families get started on the right path.
- Open an Edvest 529 account — Wisconsin’s Edvest 529 plan allows families to save for higher education while taking advantage of compelling tax benefits. Wisconsin taxpayers are eligible for a state income tax deduction from their Edvest 529 account contributions up to $3,860 annually per beneficiary (married couples filing separately and divorced parents may each claim a maximum of $1,930). Additionally, earnings are tax-free when used for qualified expenses like:
- Certain room and board expenses
- And more!
- Start Saving Now — It is never too early or late to start saving for a student’s future education expenses. While families are strongly encouraged to open a 529 account when a child is born, you can also consider doing so at other exciting milestones, like kindergarten registration or the start of middle school. Just remember, the earlier you start saving, the more time your money has to potentially grow and benefit from compound earnings.
- Invite Gifting — College Savings Month can be celebrated by anyone! Grandparents, aunts and uncles, or friends can join in by helping to save for a child’s education. Instead of the latest toy or game, invite people to contribute to a loved one’s Edvest 529 account. Gifting is perfect for birthdays, holidays, graduations, and other special occasions.
- Encourage Student Contributions — Is your student old enough to have a summer job or earn an allowance for household chores? Consider encouraging them to contribute to their 529 account. Even a small amount can create a shared sense of responsibility and a better understanding of the sacrifice being made on their behalf.
- Consider Recurring Payroll Contributions — Starting early can be the first key to successful saving. But the second is to contribute to your goal consistently over time. A great way to do this is by setting up payroll direct deposit to your 529 accounts in any amount that fits your budget — even $25 per paycheck can add up over time! Furthermore, check with your employer to see if they offer a company match — some employers in the state are already doing so.
- Enter the “What Can a 529 Do For You?” Sweepstakes — The College Savings Plans Network will be running a nationwide sweepstakes from September 1st – September 30th, 2023 where you can enter to win one of nine $529 account contributions to a 529 college savings plan of your choice! Enter here when the sweepstakes opens.
This September, as students start another year in the classroom, celebrate them with College Savings Month! You can help set them on the path to achieving their education savings goals with an Edvest 529 account.
About Edvest 529
For more than 25 years, Edvest 529 — Wisconsin’s direct-sold 529 college savings plan — has been helping families save for higher education expenses. Account owners can choose from 24 investment portfolios, access easy-to-use savings tools, and take advantage of in-state tax benefits for Wisconsin taxpayers.
Edvest 529 is a tax-advantaged investment, meaning contributions to an account may qualify for a 2023 Wisconsin state income tax deduction of up to $3,860 per beneficiary, per year (married couples filing separately and divorced parents may each claim a maximum of $1,930). Limitations apply. The plan has no sales charges, enrollment fees, or annual account maintenance fees. In fact, Edvest 529 is the fifth lowest-cost 529 college savings plan in the nation!1
To learn more about Wisconsin's Edvest 529 College Savings Plan, its investment objectives, risks, charges and expenses see the Plan Description at Edvest.com. Read it carefully. Wisconsin taxpayers can qualify for a 2023 state tax deduction up to $3,860 annually per beneficiary from contributions made into an Edvest 529 College Savings Plan (married couples filing separately and divorced parents may each claim a maximum of $1,930). Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss. 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. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Edvest 529 College Savings Plan.
Withdrawals for registered apprenticeship programs can be withdrawn free from federal and Wisconsin income tax. If you are not a Wisconsin taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances.
- 1ISS Market Intelligence 529 College Savings Fee Analysis 2Q 2023. Edvest’s average annual asset-based fees are 0.15% for all portfolios compared to 0.51% for all 529 plans.↩