The benefits of a 529 account can help make your child's future brighter
Opening a 529 college savings account can be a smart way to save for your child's higher education.
The tax advantages, low fees and flexibility of an Edvest 529 account allows you to support your child's dreams for their future. Plus, you can easily invite family and friends to join the savings journey with Ugift®.
Remember: Every dollar saved today may be one less dollar borrowed in the future.
Triple tax advantages can help both you and your child
Edvest 529 provides benefits like:
- Tax-deferred growth
- 100% tax-free withdrawals for qualified expenses
- Wisconsin taxpayers may qualify for a state tax deduction up to $5,130 per beneficiary, per year (single filers or married/joint filers) for contributions made into an Edvest 529 account
Limitations apply.1
How to maintain more of your potential growth
Tax advantages can mean more money for college and career training expenses.
This chart illustrates the hypothetical growth of an initial $2,000 investment and a monthly $200 contribution over 18 years in a taxable account vs. a tax-deferred account, assuming a 7.28% annual return. Based on past performance and does not predict or guarantee future results. Click here for chart assumptions.
Learn more about how Edvest 529's tax benefits work.
Taxable account at 18 Years Total: $75,498.91
100% tax-deferred account at 18 Years Total: $93,431.79
- Amount of tax-deferred growth that can be withdrawn tax-free for qualified expenses: $17,932.88
Read about material differences between taxable investments and tax-deferred investments.
You have options for how you save and use your savings
Low fees
Edvest 529 has some of the lowest fees of 529 plans in the nation. That could mean more money toward your savings.2
Flexibility
Use savings for qualified education costs at eligible institutions in the U.S. or abroad—including tuition, housing, books and more. Unused funds never expire and can be used at a later time, or they can be transferred to an eligible family member or a Roth IRA (subject to rollover rules and limits).3
Investment options
Our experienced investment team provides access to diverse investment options to align with your investment strategy and preferred level of involvement all while keeping costs low.
Read more about investment options.
Strategic savings
See how your contributions can add up with our tools designed to track your progress and highlight the impact of compound growth.
Learn how our 529 works.
Keep track of your education savings on the go
Open and manage your 529 account with the ReadySave™ 529 app.
- Monitor your savings progress and track your goals
- Check your account balance or investment allocations
- Easily make one-time or recurring contributions
- Invite family and friends to contribute with Ugift®
Have more questions about how the Edvest 529 College Savings Plan works?
With your Edvest 529 account, you're never locked in. You’ll always have access to several options for this money:
- Your funds can be used to pay for a variety of eligible education expenses, including at any accredited college, university, apprenticeships, community college or postgraduate program in the United States—and even some schools abroad.1
- Your 529 can be used for student loan repayment up a $10,000 lifetime limit per individual.1
- Pay for qualified K-12 expenses - up to $10,000 annually can be used per student at a public, private or religious elementary, middle or high school for qualified expenses. Qualified education expenses include curriculum, instructional materials, tutoring by approved professionals, standardized test and dual enrollment fees, and licensed educational therapies for students with disabilities.1 Click here for more information on the recent changes to primary or secondary school qualified expenses.
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
- If you just want the money back, you can withdraw the funds at any time. If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the "Additional Tax"). See the Plan Description for more information and exceptions.
- Effective January 1, 2024, 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 the rollover to be treated as a non-taxable event, certain conditions apply as referenced in Am I eligible to roll over funds from my 529 plan account to a Roth IRA?
- You can use funds for recognized postsecondary credentials and credential program fees. Click here for more information on the recent changes to qualified expenses.
- Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So, if your child changes their mind down the road, your account will still be available.
Footnotes
- 1Withdrawals for qualified 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.↩
Your contributions will always be yours, and you do not need to be a resident of Wisconsin to open, contribute to or use an Edvest 529 account. Your Edvest 529 account can also be used for a range of qualified expenses in state, out of state and abroad. If you move to another state, you can keep your money invested and continue making contributions to your Edvest 529 account—no problem!
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
- 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.↩
A Wisconsin state plan has been the preferred choice for thousands of families for more than 25 years. With an established history, Edvest 529 has helped more than 238,000 students and families save more than $5.6 billion toward education.1 The Wisconsin Department of Financial Institutions selected TIAA-CREF Tuition Financing, Inc. (TFI) as the Direct Plan Manager.
- 1Based on statistics provided as of 12/31/2024.↩
