Save for Future Education Expenses with Edvest 529, Wisconsin’s Direct-Sold College Savings Plan, & Its Triple Tax Benefits

published January 28, 2025

MADISON, Wis. (Jan. 28, 2025) – In a time of rising expenses, families are looking for financial solutions to help cut costs. Enter Edvest 529, Wisconsin’s direct-sold college savings plan, a triple tax-advantaged investment account that allows families to save for future college and career training costs while also offering a state income tax deduction to Wisconsin taxpayers, tax-deferred growth on earnings, and 100% tax-free withdrawals for qualified expenses.

1. State Income Tax Deduction

   Wisconsin taxpayers can deduct from their 2024 state income taxes up to $5,000 per beneficiary ($2,500 per beneficiary for married couples filing separate) on contributions made to an Edvest 529 account. The Wisconsin state income tax deduction is available to any Wisconsin taxpayer, not just the 529 plan account owner, making gift contributions a benefit for family members or friends. Taxpayers have until Tuesday, April 15, 2025, to contribute to an existing Edvest 529 account - or open and contribute to a new account - to be eligible for the 2024 state income tax deduction.

   In addition, Edvest 529 is happy to announce that the Wisconsin state income tax deduction for the 2025 tax year has been raised to $5,130 per beneficiary for single filers or married couples filing a joint return and to $2,560 per beneficiary for married couples filing a separate return.

2. 100% Tax-Deferred Growth

   All account earnings in an Edvest 529 account grow 100% tax-deferred at both the federal and state level, which means the payment of taxes on earnings is postponed until a later date. This results in potential account earnings being reinvested to help grow the account.

3. Tax-Free Withdrawals for Qualified Expenses

   Earnings accrued in an Edvest 529 account can be withdrawn from an account 100% tax-free at both the federal and state level when paying for qualified higher education expenses and for direct Roth IRA rollovers. Limitations apply.¹

   Qualified higher education expenses include tuition, fees, books, supplies, equipment, certain housing and food costs, and more. Wisconsin taxpayers may also use their Edvest 529 savings to pay for K-12 tuition expenses (up to $10,000 annually per beneficiary), costs associated with apprenticeship programs that are registered with the U.S. Secretary of Labor and professional programs, and to pay back qualifying student loans (subject to a lifetime limit of $10,000 per individual).²

   "Tax season can be an ideal time for families in Wisconsin to kick off their savings journey for college and career training," said Wisconsin Department of Financial Institutions Secretary Cheryll Olson-Collins. The Wisconsin Department of Financial Institutions administers the Wisconsin 529 College Savings Program, which includes the Edvest 529 college savings plan. "By starting early, families can take full advantage of compound growth and the numerous benefits provided by the Edvest 529 College Savings Plan," Olson-Collins added.

    

About Edvest 529

For more than 25 years, Edvest 529 – Wisconsin’s only 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 triple tax benefits. Edvest 529 has received numerous accolades, including being named Bronze by Morningstar Investment Research and earning "High Honors" rating by SavingForCollege.com.³

Edvest 529 is a tax-advantaged investment, meaning contributions to an account may qualify for a 2024 Wisconsin state income tax deduction of up to $5,000 per contributor per beneficiary, per year, for single filers or married couples filing a joint return. 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.⁴

Want more details?

Check out our "What is the best option for college savings" video in our new College Savings Connection video series for more of a breakdown of what a 529 plan is, and its tax benefits.

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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 before investing. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. 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. 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. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for Wisconsin's Edvest 529 College Savings Plan.

1. ¹For Wisconsin taxpayers, a rollover from a Wisconsin 529 plan account to a Roth IRA is permitted without incurring federal or Wisconsin state income tax or penalties. If you are not a Wisconsin taxpayer, these withdrawals may include recapture of tax deduction and state income tax. Account Owners and Beneficiaries should consult with a qualified tax professional before rolling over funds from their 529 plan to contribute to a Roth IRA. For the rollover to be treated as a non-taxable event, the following conditions apply: 1) The Account must have been open for 15 or more years, ending with the date of the rollover; 2) Contributions and associated earnings that you transfer to the Roth IRA must have been in the Account for more than 5 years, ending with the date of the rollover; 3) The rollover does not exceed the lifetime maximum amount of $35,000 per designated beneficiary to be rolled over from 529 plan accounts to Roth IRAs; 4) The rollover is into a Roth IRA maintained for the benefit of the Beneficiary on the Account; and 5) The rollover is sent directly to the Roth IRA. Please note that Roth IRA income limitations are waived for 529 plan rollovers to Roth IRAs; however, a Roth IRA contribution is subject to the Roth IRA contribution limit for the taxable year applicable to the Beneficiary for all individual retirement plans maintained for the benefit of the Beneficiary.↩
2. ²K-12 withdrawals are limited to $10,000 per year for K-12 tuition. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan.↩
3. ³SAVING FOR COLLEGE rates each state-sponsored 529 savings program annually by analyzing numerous factors for each plan. The 529 Rating represents their opinion of the overall attractiveness of a 529 plan to a potential saver. The Saving For College 529 Ratings are not a predictor of future investment performance, level of investment risk, or financial solvency of any of the rated 529 programs. For more information on the criteria used in compiling a plan's 529 rating, click here.↩
4. ⁴ISS Market Intelligence 529 College Savings Fee Analysis 3Q 2024. Edvest 529’s average annual asset-based fees are 0.15% for all portfolios compared to 0.51% for all 529 plans.↩

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