News & Press Releases
Score big at Tax Time with Edvest 529
MADISON, Wis. – Tax season is in full swing, and for families across Wisconsin, that means evaluating their financial situations and planning for their futures. While it’s tempting to get taxes done quickly, families in the state should be aware that they could save on their state income taxes with Edvest 529, Wisconsin’s direct sold 529 college saving plan, and its tax benefits.
Wisconsin families can score big at tax time with Edvest 529’s triple tax benefits:
- State Income Tax DeductionIndividuals who contribute to an Edvest 529 account, regardless of their relationship to a child, can deduct up to $3,560 annually per beneficiary from their 2022 Wisconsin state income taxes for married individuals filing jointly and $1,780 for individuals filing separately and divorced parents. Parents, grandparents, other family members, and even friends, have until Tuesday, April 18, 2023, to contribute to an existing Edvest 529 account or open a new account to be eligible for the 2022 state income tax deduction. Limitations apply.1Edvest 529 is also happy to announce that the state income tax deduction for 2023 has been raised to $3,860 annually per beneficiary for married individuals filing jointly and to $1,930 for individuals filing separately and divorced parents. Limitations apply.1
- 100% Tax-Deferred GrowthIn addition to a state income tax deduction, any account earnings grow 100 percent tax-deferred at both the state and federal levels. This means that instead of paying taxes annually on any earnings, an account owner can potentially grow their account faster.
- Tax-Free WithdrawalsAccount owners can withdraw funds tax free when paying for qualified education expenses at any accredited college, university, or technical schools across the U.S. and many schools abroad. Qualified higher education expenses include tuition, fees, room and board, books, computers, related technology, and more.2“Edvest 529 strives to help Wisconsin families get the most from saving for college,” said Wisconsin Department of Financial Institutions Secretary-designee Cheryll Olson-Collins. “Tax time is the perfect opportunity for Wisconsin families to start saving for higher education and receive compelling tax advantages, among other benefits,” Olson-Collins added.
Save with the one of the best
Morningstar, an investment research and management firm, recently recognized Edvest 529 with a Silver Rating based on its 2022 analysis of 54, 529 college savings plans. According to the analysis, “Edvest 529 is an excellent choice for Wisconsinites and nonresidents, offering a well-designed target enrollment series at an attractive price.”
Edvest 529 is one of the lowest cost 529 plans across the country.3 Reduced fees allow Wisconsin families to see a greater percentage of their contributions going toward future higher education expenses.
Additionally, SavingforCollege.com released 529 plan ratings where Edvest 529 earned the highest rating, 5-Cap, in both the non-resident and resident rating categories. 529 plans that earn a 5-Cap rating offer outstanding flexibility, attractive investments, and additional economic benefits.4
For more information about Edvest 529 and to learn how to open an account, visit Edvest.com, or follow us on Facebook.
About Edvest 529
Edvest 529 is Wisconsin’s direct sold 529 college savings plan designed to help families save for higher education expenses for more than 25 years. 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 state income tax deduction of up to $3,560 per beneficiary, per year. Limitations apply.1 In addition, earnings are tax-free if used for qualified education expenses like tuition and fees, books, laptops, and more. Funds can be used at any accredited public or private university, college, technical college, community college, or professional school nationwide and many schools abroad. Funds can also be used for apprenticeships registered and certified with the Secretary of Labor under the National Apprenticeship Act and for tuition in connection with enrollment or attendance at a primary or secondary public, private, or religious school, up to a maximum of $10,000 per taxable year per beneficiary from all Section 529 programs.2 The plan has no sales charges, enrollment fees, or annual account maintenance fees. Edvest 529 is the sixth lowest-cost 529 college savings plan in the nation!4
1To learn more about Wisconsin’s Edvest College Savings Plan, its investment objectives, risks, charges and expenses please see the Plan Description at Edvest.com. Read it carefully. 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. 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. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for the Edvest College Savings Plan.↩
2If 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.↩
3ISS Market Intelligence 529 College Savings Fee Analysis 4Q 2022. Edvest’s average annual asset-based fees are 0.16% for all portfolios compared to 0.51% for all 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. ↩
In an annual review (11/2/2022) of the largest 529 college savings plans (54 plans representing 93% of 529 assets), Morningstar identified 34 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2022. 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, a well-resourced and experienced investment team, strong, stable and engaged oversight from the state, and low 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.