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’s:

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 $4,000 annually per beneficiary for married individuals filing jointly and to $2,000 for individuals filing separately and certain divorced parents.

2. 100% Tax-Deferred Growth

In addition to a state income tax deduction, any account earnings grow 100% 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).

“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. “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 54 different 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. 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.

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For more information about Edvest 529 and to learn how to open an account, visit Edvest.com, or follow us on Facebook or Instagram.