An EDGE adds opportunities to excel
The benefits of 529 plans for employers & employees
Saving for education expenses, such as college or trade school, is a topic that many parents think about from the time their children are born. And with education costs continuing to rise, there are many advantages to saving early, such as investing in a 529 plan. As part of your company’s benefits package, you have access to the Scholar’s Edge 529 Plan – a tax-advantaged way to save for a loved one’s future education expenses.
What is a 529 plan?
A 529 plan is a tax-advantaged savings vehicle specifically designed to help families save for future education expenses for a chosen beneficiary. 529 plans are structured similarly to a Roth 401K or IRA in that they invest after-tax contributions into investment portfolios.
Benefits of 529 plans?
What are the benefits of saving in a 529 Plan versus other savings options, such as putting money in a savings account in your local bank?
Tax advantages of a 529 plan:
- Tax deferred growth of investment earnings
- Tax-free withdrawals for qualified expenses
- Income tax deductions for certain states
Control:
- Apply funds toward a range of qualified higher education expenses (PDF)
- Control portfolio selection and distributions
- Transfer account assets to another family member if the original beneficiary no longer needs the funds for education expenses
Benefits of the Scholar’s Edge 529 Plan
A comprehensive range of investment option
Scholar’s Edge provides a wide variety of portfolios, from Year of Enrollment portfolios to Target Risk portfolios to Individual portfolios, so you can choose what’s best for you.
Low minimum investment
You can open a Scholar’s Edge 529 plan with as little as $1. This makes education savings accessible.
High investment possibilities
You can invest up to a maximum of $500,000 per beneficiary with Scholar’s Edge.
No income limit
No matter your salary, you can start saving in the Scholar’s Edge 529 plan today.
Scholar’s Edge 529 payroll direct deposit?
You can set up direct deposit with your personal account information to easily contribute to your 529 plan.
Benefits of direct deposit for Employees
The automatic deductions keep savings on track, allowing you to “set it and forget it”.
- You can quickly and easily save early and often for your loved.
- No upfront sales charges will apply to the purchase of Class A units.
- No fees for payroll direct deposit.
- These direct deposits can be changed or canceled at any time, allowing your 529 Plan to travel with you no matter where your career takes you.
Enjoying the benefits of a 529 plan is as easy as 1-2-3!
If you are ready to start saving for your family at work, just follow these steps:
2.
Submit the form to your HR or payroll team
3.
Start saving!
Benefits of direct deposit for employers
Supporting 529 plans differentiates your company from others by helping your team save for their important education goals. Additionally, there are no setup or plan costs with minimal administrative support required. And you have the ability to match contributions. What better way to take care of your employees than providing for their children?
Contact our dedicated Principal sales team: 800-787-1621, Monday through Friday, 9:00 a.m. – 8:00 p.m. ET.
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