News & Press Releases
Families Can Receive Tax Advantages by Saving for College with Edvest, the State of Wisconsin’s Direct-Sold 529 College Savings Plan
MADISON, Wis. – Tax season is in full swing, and for families across Wisconsin, that means evaluating their financial situations and creating budgets and financial roadmaps for the future. With more than 1.2 million children under the age of 18 in the state, college savings should be a financial priority for many as tax day approaches.*
“With tax day just around the corner, this is the perfect opportunity for Wisconsin families to look at their financial situation and take control of one of the most important elements of their finances – planning for their children’s higher education,” said Wisconsin Department of Financial Institutions Secretary-designee Cheryll Olson-Collins. “With a few simple steps, families can take a hold of their financial futures by starting to save for higher education with Edvest today.”
Edvest account owners, regardless of their relationship to a child, can deduct up to $3,380 annually, per beneficiary, from their 2021 Wisconsin state income tax. Families who have more than one child, or grandparents saving for multiple grandchildren, may be eligible for a state tax deduction of up to $6,760 for two children, $10,140 for three, and so on. For the 2021 tax year, individuals have until Monday, April 18, 2022 to contribute to an existing Edvest account, or open and contribute to a new account, to be eligible for a reduction in their state taxable income of up to $3,380 per beneficiary.
In addition to a state tax deduction, investment earnings grow tax-deferred and are tax-free at both the state and federal level when used to pay for qualified expenses.
Edvest is happy to announce the 2022 state tax deduction has been raised to $3,560 annually, per beneficiary. This powerful tax incentive is designed to help Wisconsin families maximize their dollars while saving for higher education. Limitations apply.1
Save With One of the Best
- Rated as a Best-In-Class 529 plan by Morningstar for eight consecutive years2
- One of the nation’s lowest cost 529 plans3
- Five-Cap Overall Rating for Wisconsin Residents by SavingforCollege.com4
For more information about Edvest and how to open an account, visit Edvest.com or call 888-338-3789. To schedule an appointment with one of our college savings consultants or to learn about offering Edvest at Work as part of an employer benefit, visit us at edvest.com/plan/everyone-employers.
1To learn more about Wisconsin’s Edvest College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Plan Description at Edvest.com. Read it carefully. For the 2021 tax year, Wisconsin taxpayers can qualify for a state tax deduction up to $3,380 per beneficiary from contributions made into an Edvest College Savings Plan. For the 2022 tax year, Wisconsin taxpayers can qualify for a state tax deduction up to $3,560 per beneficiary from contributions made into an Edvest College Savings Plan. 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.↩
2In an annual review (10/26/2021) of the largest 529 college savings plans (62 total), Morningstar identified 32 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2021. These plans offer investment options that Morningstar expects will collectively outperform and exhibit some combination of the following attractive features across four key pillars: a well-researched asset-allocation approach, a robust process for selecting underlying investments, an appropriate menu of options to meet investor needs, strong oversight from the state and investment manager, and minimal fees. The four key pillars used by Morningstar to evaluate college savings plans include – Process, People, Parent, and Price. For more information about Morningstar’s overview of the Edvest College Savings Plan, go to Morningstar.com. Past performance does not predict future results. Source: Morningstar.com. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions.↩
3ISS Marketing Intelligence 529 College Savings Fee Analysis Q4 2021. Edvest’s average annual asset-based fees are 0.19% for all portfolios compared to 0.53% for all 529 plans – almost three times lower than today’s national average for 529 plans.↩
4SAVING FOR COLLEGE’S 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories: Performance, Costs, Features, Reliability, and Resident. Savingforcollege.com.↩
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Wisconsin’s Edvest College Savings Plan.
*According to the 2021 U.S. Census estimate for Wisconsin↩