Frequently asked questions

Edvest 529 account owners can benefit from three types of tax advantages:

• Wisconsin State Income Tax Deduction - Wisconsin taxpayers are eligible for a state income tax deduction for contributions to the Edvest 529 College Savings Plan.
• Tax-deferred growth - With an Edvest 529 account, if your money grows over time through investment earnings, unlike a regular investment account, you will not be taxed on the growth (earning portions) while the funds are in the account.
• Tax-free withdrawals for qualified educational expenses - Unlike taxable investment accounts, if you use your funds to pay for qualified higher education expenses, then you do not have to pay state or federal taxes on the earnings at all.

If you don’t use your funds on qualified expenses – only the earnings portion withdrawn is subject to state and federal income tax, as well as a 10% federal tax penalty. The contribution portion of your account will never be taxed or penalized since it was made with after-tax dollars.

Additionally, there are instances in which the 10% tax penalty does not apply, such as the death or disability of the beneficiary and the receipt of a qualified scholarship by the beneficiary.

So remember - the unique tax advantages of saving with Edvest 529 include the Wisconsin state income tax deduction, tax-deferred growth, and tax-free withdrawals for qualified educational expenses.

Wisconsin taxpayers are eligible for a state income tax deduction for contributions to the Edvest 529 College Savings Plan. The maximum contribution deduction for the 2024 tax year is:

• $5,000 per Beneficiary for a single filer or married couple filing a joint return; or
• $2,500 per Beneficiary for a married couple filing separately.

A Wisconsin taxpayer is permitted a deduction from Wisconsin adjusted gross income for a contribution to an account less any Qualified Withdrawals made during the tax year. Rollovers of the principal amount into an Edvest 529 account are eligible for the subtraction from state taxable income, subject to applicable yearly limitations. Amounts in excess of the current tax year’s deduction limit may be carried forward to future years and claimed as a subtraction subject to the yearly limitations.

No. If you are making a withdrawal to cover a qualified education expense for the beneficiary, you are not subject to federal or state income tax.

Qualified education expenses such as tuition, certain room and board expenses, fees, books, supplies, computers and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution, which includes most postsecondary institutions. Review the Plan Description for additional details on eligible expenses and withdrawals.

The earnings portion of a non-qualified withdrawal is subject to federal and state income taxation and an additional 10% federal tax. See the Plan Description for details.

The available federal tax benefits for paying qualified education expenses through these plans must be coordinated to avoid the duplication of such benefits. Account owners should consult a qualified tax advisor regarding the interaction under the Internal Revenue Code (IRC) of the federal income tax education-incentive provisions when addressing account withdrawals.

Contributions to an Edvest 529 account may help reduce the taxable value of your estate. Learn more about gifting to an existing account. For additional details on tax benefits, we recommend consulting a tax advisor.

There is no federal income tax deduction for 529 plan contributions, regardless of where you live or which 529 plan you participate in.

Plan contributions are always made after-tax.

At the federal level, qualified rollovers from a 529 plan account to a Roth IRA do not incur federal income tax or penalties.

State tax treatment of a rollover from a 529 plan into a Roth IRA is determined by the state where you file state income tax.

For Wisconsin taxpayers, a rollover from a 529 plan account to a Roth IRA is permitted without incurring federal or Wisconsin income tax or penalties.

For the rollover to be treated as a non-taxable event, the following conditions apply:

• The Account must have been open for 15 or more years, ending with the date of the rollover;
• 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;
• 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;
• The rollover is into a Roth IRA maintained for the benefit of the Beneficiary on the Account; and
• 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.

The IRS is expected to issue additional guidance that may impact 529 plan account rollovers to Roth IRAs, including the above referenced conditions.

State tax treatment of a rollover from a 529 plan into a Roth IRA is determined by the state where you file 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. You are responsible for determining the eligibility of a 529 plan to Roth IRA rollover including tracking and documenting the length of time the 529 plan account has been opened and the amount of assets in your 529 plan account eligible to be rolled into a Roth IRA.

Qualified higher education expenses include tuition, certain room and board expenses, fees, books, supplies and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution. This includes most postsecondary institutions. When used primarily by the beneficiary enrolled at an eligible educational institution, computers and related technology such as internet access fees, software or printers are also considered qualified higher education expenses.

Qualified higher education expenses also include certain additional enrollment and attendance costs at eligible educational institutions for any beneficiary with special needs.

Qualified higher education expenses also include (a) tuition in connection with enrollment or attendance at a primary or secondary public, private or religious school (up to a maximum of $10,000 of distributions per taxable year per beneficiary from all Section 529 plans)¹; (b) expenses for fees, books, supplies and equipment required for the participation of a beneficiary in a certified apprenticeship plan¹; and (c) amounts paid as principal or interest on any qualified education loan of either the beneficiary or a sibling of the beneficiary (up to a lifetime limit of $10,000 per individual).¹ Review the Plan Description for additional information, including the state tax treatment of withdrawals for these expenses.

Footnotes

1. ¹Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, registered apprenticeship programs, and student loans 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. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.↩

A non-qualified withdrawal is any withdrawal that does not meet the requirements of being a (a) qualified withdrawal; (b) taxable withdrawal; or (c) rollover. The earnings portion of a non-qualified withdrawal is subject to state and federal income taxation and the 10% additional federal penalty tax on earnings (the “Additional Tax”). See the Plan Description for more info.

Your Edvest 529 account can be used at eligible colleges, universities, vocational schools, community colleges, graduate or postgraduate plans, apprenticeships and more.¹ Contact your school to determine whether it qualifies as an eligible educational institution or use the Federal School Code Search tool on the Free Application for Federal Student Aid (FAFSA) website.

Footnotes

1. ¹Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, registered apprenticeship programs, and student loans 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. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.↩

You may request a withdrawal via your account online. Select the beneficiary you would like to withdraw the money for, click “Make a Withdrawal” on the left-hand navigation and follow the directions. You may also request a withdrawal using the Withdrawal Request Form.

The beneficiary must be enrolled at least half-time at an eligible postsecondary institution. For students living in housing owned and operated by the institution, the full invoice amount will be used to determine the qualified housing and food expenses. In the case of students living at home or in off-campus housing, the “cost of attendance” allowance for the individual institution will be used for the qualified room and board expenses.

Computers and related technology such as internet access fees, software or printers are also qualified education expenses. The student must be the primary user of the equipment.

Federal tax treatment of a 529 plan’s qualified higher education expenses (QHEEs) includes the repayment of up to $10,000 (including principal and interest) on any qualified education loan of either a 529 plan designated beneficiary or a sibling of the designated beneficiary. To be a qualified expense, the loan repayment amount for an individual is subject to a lifetime limit of $10,000.¹ Get additional details in the Plan Description.

Footnotes

1. ¹Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, registered apprenticeship programs, and student loans 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.↩

A taxable withdrawal will be subject to applicable state and federal income tax on earnings, if any, but will not be subject to the 10% additional federal tax on earnings (the “Additional Tax”).

Some examples of a taxable withdrawal include a beneficiary’s death, permanent disability, receipt of a scholarship award or attendance at a military academy. For more information, review the Plan Description.

Taxable withdrawals that are not subject to the 10% federal penalty tax are withdrawals due to the beneficiary’s death, the permanent disability of the beneficiary, the beneficiary’s receipt of a scholarship award or certain other tax-free amounts, or the beneficiary’s attendance at a military academy. A taxable withdrawal will be subject to applicable state and federal income tax on earnings, if any.

Yes. Funds may be redeposited to your account within 60 days of the refund without penalty should a student need to withdraw from a class. The recontributed amount cannot exceed the amount of the refund.

The SECURE 2.0 Act of 2022, which included several significant retirement savings related enhancements, amended Section 529 of the Internal Revenue Code to allow for funds in long-term 529 plan accounts to be rolled over directly to a Roth IRA for the benefit of the 529 account beneficiary. For the rollover to be treated as a non-taxable event, certain conditions apply as referenced in Am I eligible to rollover funds from my 529 plan account to a Roth IRA?

Account owners may roll money from an Edvest 529 account to a Roth IRA for the benefit of the 529 plan account beneficiary without incurring federal income tax or penalties (state tax treatment varies). For Wisconsin taxpayers, a rollover from a 529 plan account to a Roth IRA is permitted without incurring Wisconsin income tax or penalties.

For the rollover to be treated as a non-taxable event, the following conditions apply:

• The 529 plan account must be open for 15 or more years, ending with the date of the rollover;
• Contributions and associated earnings that you transfer to the Roth IRA must be in the 529 plan account for more than five (5) years, ending with the date of the rollover;
• The Internal Revenue Code permits a lifetime maximum amount of $35,000 per designated beneficiary to be rolled over from 529 plan accounts to Roth IRAs;
• 529 plan assets can only be rolled over into a Roth IRA maintained for the benefit of the designated beneficiary on the 529 plan account;
• 529 plan assets must be sent directly to the Roth IRA;
• Roth IRA income limitations are waived for 529 plan rollovers to Roth IRAs; and
• The Roth IRA contribution is subject to the Roth IRA contribution limit for the taxable year applicable to the designated beneficiary for all individual retirement plans maintained for the benefit of the designated beneficiary.

State tax treatment of a rollover from a 529 plan into a Roth IRA is determined by the state where you file 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. You are responsible for determining the eligibility of a 529 plan to Roth IRA rollover including tracking and documenting the length of time the 529 plan account has been opened and the amount of assets in your 529 plan account eligible to be rolled into a Roth IRA.

Anyone with a valid Social Security Number or Taxpayer Identification Number can be the beneficiary, including the account owner. Learn more about who can open, benefit from and contribute to an Edvest 529 account.

There’s no cost associated with opening an Edvest 529 account or owning more than one account. You could open a different account for each child.

You might do this to align investment strategies with the time frame each child will begin using the funds. For example, an older child’s account could be more conservatively invested to help protect your contributions as they near college, whereas a younger child’s account might be invested to balance growth and income strategies during a longer time frame. You may also prefer to pay college expenses first out of your highest growth account to maximize federal tax benefits and to encourage gift contributions from friends and family.

Keep in mind: Edvest 529 allows you the flexibility to select multiple investment portfolios within each account. This offers you more control to manage risk on your terms. For example, adding the Principal Plus Interest Investment Portfolio can help preserve your funds until your student is ready for the next step in their education.

Multiple accounts can also aid in estate planning by ensuring that college funds are allocated appropriately to each beneficiary upon the death of the account owner. But if you’d like to stick to one account, you can change beneficiaries at any time and at no additional cost.

Yes. A beneficiary may have more than one Edvest 529 account. However, an account owner can have only one account for each beneficiary.

For example, a beneficiary may have an account owned by their parent and/or grandparent and/or aunt, etc. There is an overall maximum account balance limit of $567,500, which applies to all accounts opened for a beneficiary.

Yes. You can change the beneficiary of your account at any time or transfer a portion of your investment to a different eligible beneficiary. The new beneficiary must be an eligible member of the previous beneficiary’s family.

For more information, read the form on how to change your beneficiary.

Performance data for Edvest 529 Investment Portfolios is available.

Edvest 529 offers a wide range of investment portfolios to fit your life situation, risk tolerance and savings goals. These portfolios vary in investment strategy and degree of risk, allowing you to select a portfolio or combination of portfolios that fit your needs and savings goals.

To compare our Edvest 529 Investment Portfolios, visit our Investment Comparison page. For more information on the investment objectives, risks, charges and expenses, read the Plan Description.

Yes. Each time you make a contribution, you may select from any of the Edvest 529 Investment Portfolios. Once invested in a particular portfolio, contributions and earnings may be transferred to another investment portfolio twice per calendar year or upon transfer of funds to a plan account for a different eligible beneficiary (see the Plan Description for more information).

To transfer funds between investment portfolios, log in to your account, click “View Details” for your beneficiary, then choose “Change of Investment Form.” You may also request and submit by mail the Change of Investment Form.

An Edvest 529 account can be started with as little as $25. How much you need to save will depend on what you plan to use the money for and when.

A few helpful tools:

• Check out the College Savings Calculator to estimate the cost of college.
• Use our College Planning Calculator to see how your savings could add up over time.

You can contribute to an Edvest 529 account by any of the following: check, electronic funds transfer, establishing a recurring contribution, establishing payroll direct deposit, rollover from another state’s 529 plan account, or redemption proceeds from a Coverdell Education Savings Account or qualified U.S. savings bond. Your contribution will be invested according to your allocation instructions, which you may change at any time online, by telephone or by requesting and submitting the Change of Investment Form. For more information, click here.

Contributing to an existing Edvest 529 account is easy and secure with our online Ugift^® platform. Gift contributions can also be made by check and mailed in. Wisconsin taxpayers' gifts may be eligible for the state tax deduction. Check with your tax professional.

For the tax year 20232024:

• There’s no federal gift tax on contributions you make up to $17,000$18,000 per year if you’re a single filer or $34,000$36,000 if you’re a married couple.
• You can also accelerate your gifting with a lump-sum gift of $85,000$90,000 if you’re a single filer or $170,000$180,000 if you’re married and prorate the gift over five years per the federal gift tax exclusion.
• You can gift this amount to as many individuals or beneficiaries as you like, free from income tax.

Consult your tax professional for more details. Learn more about gifting here.

To view your transaction history, log in to your account, click “View Details” for your beneficiary and scroll down to the transactions section. You can always speak to one of our college savings specialists at 1-888-338-3789, Monday through Friday, 7 a.m. to 9 p.m. CT.

There is no maximum Edvest 529 contribution limit. However, there is an overall maximum account balance limit of $545,500$567,500 , which applies to all Edvest 529 accounts opened for a beneficiary. Accounts that have reached the maximum account balance limit may continue to accrue earnings.

Edvest 529 accounts can be opened with as little as $25. Check out our unique gifting feature to see how you can easily and securely ask for and manage gift contributions to your Edvest 529 account.

Yes. Once an Edvest 529 account is open, anyone can make contributions, not just the account owner. Parents, grandparents, aunts, and uncles, and even family friends can make ongoing contributions to an account, or gift contributions during special occasions like birthdays and holidays. It is easy for friends and family to give a meaningful gift with Edvest 529’s Ugift^® platform.

Assets in a parent-owned 529 account have less of an impact on financial aid than some other savings methods. Expected Family Contribution (EFC) calculations for financial aid generally factor parent assets outside of retirement savings at approximately 5%, whereas student assets are generally factored in at 20% or more. Therefore, a parent-owned 529 account may have less of an impact on financial aid eligibility than assets owned by the student.¹

Footnotes

1. ¹The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder’s and not the student’s. (Student assets are generally assessed at 20% whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student’s eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue.↩

If the beneficiary receives a scholarship that covers the cost of qualified expenses, you can withdraw the funds from your account up to the amount of the scholarship without incurring the 10% federal tax penalty on the earnings portion. However, the earnings portion will be subject to federal and state income tax. If the amount withdrawn exceeds the amount of the scholarship, the earnings portion of the amount withdrawn will be subject to the additional 10% federal penalty tax. Please consult with a qualified tax professional or consultant.

Historically, withdrawals from grandparent owned 529 plans have been considered untaxed income to the student and added to the student’s adjusted gross income on the FAFSA. Beginning with the 2024-2025 FAFSA, withdrawals from grandparent owned 529 plans will no longer need to be reported on the FAFSA or negatively affect the student’s eligibility for federal financial aid. FAFSA simplification is subject to change. You should check with the schools you are considering regarding this issue. For assistance or help completing FAFSA click here.

Anyone with a valid Social Security Number or Taxpayer Identification Number can open an Edvest 529 account. Accounts can be opened online or by downloading enrollment materials.

There are no sales charges, startup fees or maintenance fees associated with Edvest 529 accounts. For details on total annual asset-based fees, comprised of the underlying investment expenses for each investment portfolio and the plan manager fee, review the Investment Portfolio Fee Table in the Plan Description.

Yes. Whether you have recently moved to the state, have an underperforming or higher-cost 529 plan or just want to simplify, consolidating 529 accounts into Edvest 529 is easy. You can transfer funds from another 529 plan to your Edvest 529 account for the same beneficiary once within a 12-month period without incurring tax penalties.

Consolidating education savings into Edvest 529 also gives you a single view of your savings and performance as well as single-step payments to colleges, universities, etc.

You may also save money that can go right back into your college fund. Edvest 529 expenses are among the lowest in the country and less than half the national average for 529 plans.¹ You pay no sales charges, startup fees or maintenance fees.

The 529 plan from which you are transferring funds may be subject to different features, costs and surrender charges. As such, you should consult your tax advisor or the other 529 college savings plan prior to making any decisions. For more information, see how to manage an incoming rollover from another 529 saving plan account.

Footnotes

1. ¹Source: ISS Marketing Intelligence 529 College Savings Fee Analysis Q1 2023. Edvest 529’s average annual asset-based fees are 0.15% for all portfolios compared to 0.51% for all 529 plans.↩

Log in to sign up for electronic delivery for statements, transactions, profile confirmations and tax forms.

For information, please click here.