Notice to owners and prospective owners of Wisconsin 529 College Savings plan accounts:
The state's current budget (2015 Act 55) was signed into law on July 12, 2015. There are some changes to the plans as a result of this legislation.
Effective August 1, 2015, the Maximum Account Balance is increased to $425,000, as the sum of all Wisconsin plan accounts for the same beneficiary (i.e. Edvest plus Tomorrow's Scholar plus Tuition Units).
Incoming rollovers from other states' 529 plans continue to be accepted. Beginning with the 2015 tax year, the portion that is principal or contributions may qualify for reducing your Wisconsin taxable income, including carry-forward for subsequent years; the portion attributed to growth is not eligible. Amounts that received an earlier Wisconsin reduction are not eligible.
There are other aspects to this law that are currently being clarified. Additional information will be posted to this website as it becomes available.
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 $425,000 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 $3,100 per beneficiary from their Wisconsin taxable income for the 2015 tax year, up until April 15, 2016. 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.
To view contribution, rollover and distribution FAQs for College Savings Accounts at the Wisconsin Department of Revenue website, click here.
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.