MADISON, Wis. (Feb. 6, 2023) – Tax season is in full swing, and for families across Wisconsin, that means evaluating their financial situations and planning for their futures. While it’s tempting to get taxes done quickly, families in the state should be aware that they could save on their state income taxes with Edvest 529, Wisconsin’s direct sold 529 college saving plan, and its tax benefits.
Wisconsin families can score big at tax time with Edvest 529’s triple tax benefits:
1. State Income Tax Deduction
Individuals who contribute to an Edvest 529 account, regardless of their relationship to a child, can deduct up to $3,560 annually per beneficiary from their 2022 Wisconsin state income taxes for married individuals filing jointly and $1,780 for individuals filing separately and divorced parents. Parents, grandparents, other family members, and even friends, have until Tuesday, April 18, 2023, to contribute to an existing Edvest 529 account or open a new account to be eligible for the 2022 state income tax deduction. Limitations apply.1
Edvest 529 is also happy to announce that the state income tax deduction for 2023 has been raised to $3,860 annually per beneficiary for married individuals filing jointly and to $1,930 for individuals filing separately and divorced parents. Limitations apply.1
2. 100% Tax-Deferred Growth
In addition to a state income tax deduction, any account earnings grow 100 percent tax-deferred at both the state and federal levels. This means that instead of paying taxes annually on any earnings, an account owner can potentially grow their account faster.
3. Tax-Free Withdrawals
Account owners can withdraw funds tax free when paying for qualified education expenses at any accredited college, university, or technical schools across the U.S. and many schools abroad. Qualified higher education expenses include tuition, fees, room and board, books, computers, related technology, and more.2
“Edvest 529 strives to help Wisconsin families get the most from saving for college,” 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 and receive compelling tax advantages, among other benefits,” Olson-Collins added.
Save with the one of the best
Morningstar, an investment research and management firm, recently recognized Edvest 529 with a Silver Rating based on its 2022 analysis of 54, 529 college savings plans. According to the analysis, “Edvest 529 is an excellent choice for Wisconsinites and nonresidents, offering a well-designed target enrollment series at an attractive price.”
Edvest 529 is one of the lowest cost 529 plans across the country.3 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.4
For more information about Edvest 529 and to learn how to open an account, visit Edvest.com, or follow us on Facebook.
