Spring into Triple Tax Savings with Edvest 529, Wisconsin’s Direct-Sold College Savings Plan

published February 5, 2024

MADISON, Wis. (Feb. 5, 2024) – While it might not feel like it now, the first day of spring is just around the corner. Not only can Wisconsinites look forward to flowers blooming and warmer weather, but they can also look forward to potentially saving on taxes with Edvest 529, Wisconsin’s direct-sold 529 college saving plan.

Wisconsin families can spring into triple tax savings this year with Edvest 529:

1. State Income Tax Deduction

   Wisconsin taxpayers who contribute to an Edvest 529 account, regardless of their relationship to a child, can deduct up to $3,860 annually per beneficiary from their 2023 Wisconsin state income taxes (married couples filing separately and certain divorced parents may claim a maximum of $1,930 per beneficiary). Parents, grandparents, other family members, and even friends, have until Monday, April 15, 2024, to contribute to an existing Edvest 529 account - or open and contribute to a new account - to be eligible for the 2023 state income tax deduction.

   Edvest 529 is also happy to announce that the state income tax deduction for 2024 has been raised to $5,000 annually per beneficiary for single filers or for married individuals filing jointly, and to $2,500 for married couples filing separately.

2. 100% Tax-Deferred Growth

   In addition to a state income tax deduction, any account earnings grow 100 percent tax-deferred at both the state and federal level. This is important because when an account owner pays fewer taxes, it can mean more money to pay for qualified education expenses - giving their beneficiary an even bigger head start for college.

3. Tax-Free Withdrawals for Qualified Expenses

   Account owners can withdraw funds tax-free from an Edvest 529 account when paying for qualified education expenses at any accredited college, university, or technical school across the U.S. and many schools abroad. Qualified higher education expenses include expenditures like tuition, fees, books, supplies, equipment, certain room and board (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).¹

“Edvest 529 helps our Wisconsin families give their loved ones an even bigger head start with our unique triple tax benefits,” said Wisconsin Department of Financial Institutions Secretary-designee Cheryll Olson-Collins.² “Tax time is the perfect opportunity for Wisconsin families to start saving for higher education, because the sooner one starts, the more they can take advantage of compound earnings and Edvest 529’s many benefits,” Olson-Collins added.

Save with one of the best

Morningstar, an investment research and management firm, recently recognized Edvest 529 with a silver rating based on its 2023 analysis of fifty-four, 529 college savings plans. According to the analysis, “Edvest 529 College Savings Plan is an excellent choice for Wisconsinites and nonresidents alike. The plan’s well-designed target-enrollment series comes at a bargain price and continues to earn a Morningstar Medalist rating of silver.”

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 or Instagram.

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 has earned numerous accolades, including being named Silver by Morningstar Investment Research and Management Firm for the second year in a row, earning a 5-Cap Rating by SavingForCollege.com,⁴ and a 2023 Platinum MarCom Award for Website Redesign.⁵

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, 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!³

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Footnotes

1. In an annual review (11/2/2023) of the largest 529 college savings plans (54 plans representing 90% of 529 assets as of August 2023), Morningstar identified 34 plans that stand out above the rest, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2023. These plans offer a well-researched asset-allocation approach, a robust process for selecting and monitoring underlying investments, a well-resourced and experienced investment team, stable and engaged oversight from the state and low fees. Investors in what Morningstar analysts consider the best 529 plans should be well-positioned for the future. The four key pillars used by Morningstar to evaluate 529 college savings plans include – Process, People, Parent, and Price. For more information about Morningstar’s overview of the Edvest 529 College Savings Plan, go to Morningstar.com. TIAA-CREF Tuition Financing, Inc. compensates Morningstar for the ability to quote these ratings in public communications. 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.
2. 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. 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.
3. 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. K-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.↩
4. ²The Wisconsin 529 College Savings Program offers two savings plans to save for higher education under Section 529 of the U.S. Internal Revenue Code: Edvest 529 (direct-sold) and Tomorrow's Scholar (advisor-sold). Both plans are qualified tuition programs under 26 USC 529 and are administered by the State of Wisconsin’s Department of Financial Institutions (DFI).↩
5. ³ISS Market Intelligence 529 College Savings Fee Analysis 4Q 2023. Edvest 529’s average annual asset-based fees are 0.15% for all portfolios compared to 0.51% for all 529 plans.↩
6. ⁴SAVING FOR COLLEGE’S 5-Cap Ratings provide 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. The 5-Cap Ratings represent our Saving for College’s opinion of the attractiveness of each 529 plan relative to all other 529 plans, based on the many factors that they feel are important. The category scores and Resident Upgrades are used to compute the plan's overall 5-Cap Rating using an averaging algorithm. A plan's category scores are computed on a scale of 1 to 5, carried out to two decimal places, and displayed on the Plan Details page alongside the 5-Cap Rating. In addition, they assign a "Resident Upgrade" score to reflect additional benefits provided by the 529 plan to residents of the sponsoring state.↩
7. ⁵The 2023 international MarCom competition recognizes outstanding achievement by creative professionals involved in the concept, direction, design, and production of marketing and communication materials and programs. Winners are graded with points by the work’s quality, creativity, and resourcefulness and each entry is viewed and discussed individually. Entries receiving scores between 90-100 points are Platinum winners. There were over 6,500 entries from throughout the United States, Canada, and 47 other countries.↩
8. All social media platforms are managed by the State of Wisconsin.

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