September is National College Savings Month
Begin saving today for your children's future. Friends and family can contribute, too! Check out the links on this page for helpful information and tools for the path to higher education.
Important announcement regarding contributions:
Wisconsin 2013 Act 227 is now in effect for 2014 and later tax years. Contributions to state-sponsored college savings accounts (Edvest and Tomorrow's Scholar) continue to be eligible for subtractions from state income.
The subtraction benefit is now expanded to include contributions by any adult, no longer limited to immediate family. The new law also extends the deadline to make contributions to April 15 of the following year.
For the 2014 tax year, the maximum subtraction amount will be $3,050 per beneficiary, as calculated by the Department of Revenue. Maximum amounts may increase in subsequent years, based on a measure of inflation. Contributions exceeding the maximum may be carried forward to the next taxable year and taxable years thereafter.
Complete details are in the current program description and disclosure materials at both Wisconsin plan websites.
Does your family have college savings needs?
Edvest and Tomorrow's Scholar can help
Higher education is crucial to helping children achieve their dreams, and planning ahead for those expenses can really help. Edvest and Tomorrow's Scholar, the two savings plans in Wisconsin's 529 College Savings Program, offer an easy and flexible way for families to prepare for these costs.
The program offers valuable benefits
An array of low-cost investment options Choose from portfolios that range from conservative to more aggressive allocations to align with your time frame and investment philosophy. Both passive (indexed) and actively-managed portfolios are available, along with stable value choices. Institutional class investment fees make college savings more affordable.
Flexible contribution amounts Open an account for as little as $25 per month. You control the amounts and frequency of automatic deductions or lump-sum payments. Also enjoy lifetime contribution limits of $330,000 per beneficiary.
Most college costs at thousands of schools are eligible Qualified expenses include tuition, fees, books, room and board, or required expenses at most institutions nationwide--including technical schools, public and private colleges, universities, graduate schools, and also at many locations outside of the U.S.
No age, income, or time limits Any adult can contribute to an account--there are no income level restrictions, or age limitations for owners or beneficiaries. Accounts may also be used for graduate school, continuing education, or classes later in life.
Federal and state tax advantages Earnings in your account grow both federal and state tax-free when used for qualified higher education expenses.
Annual state tax benefit Any person may subtract contributions up to $3,050 per beneficiary from their Wisconsin taxable income for the 2014 tax year, up until April 15, 2015. Amounts in excess may be carried forward for use in future tax years. Contributions to accounts with yourself as named beneficiary are also eligible for this benefit.
More information about the Edvest direct-sold plan is available online or by calling 1-888-338-3789. The Tomorrow's Scholar plan is only available through financial advisors and fee-only planners. Both plans are qualified tuition programs under 26 USC 529, offering certain tax benefits, and are administered by the State of Wisconsin. Residents of other states should check to see if 529 plans in their home state offer favorable state tax advantages. The Edvest Facebook, Twitter, YouTube channel, and College Saving Connection blog pages are managed by the State of Wisconsin.