Save for Future Education Expenses with Edvest 529, Wisconsin’s Direct-Sold College Savings Plan, and its Triple Tax Benefits
The deadline for Wisconsin taxpayers to contribute to an Edvest 529 account is April 15, 2025, to be eligible for the 2024 state income tax deduction.
MADISON, Wis. (Jan. 28, 2025) – In a time of rising expenses, families are looking for financial solutions to help cut costs. Enter Edvest 529, Wisconsin’s direct-sold college savings plan, a triple tax-advantaged investment account that allows families to save for future college and career training costs while also offering a state income tax deduction to Wisconsin taxpayers, tax-deferred growth on earnings and 100% tax-free withdrawals for qualified expenses.
1. State Income Tax Deduction
Wisconsin taxpayers can deduct from their 2024 state income taxes up to $5,000 per beneficiary ($2,500 per beneficiary for married couples filing separately) on contributions made to an Edvest 529 account. The Wisconsin state income tax deduction is available to any Wisconsin taxpayer, not just the 529 plan account owner, making gift contributions a benefit for family members or friends. Taxpayers have until Tuesday, April 15, 2025, to contribute to an existing Edvest 529 account – or open and contribute to a new account – to be eligible for the 2024 state income tax deduction.
In addition, Edvest 529 is happy to announce that the Wisconsin state income tax deduction for the 2025 tax year has been raised to $5,130 per beneficiary for single filers or married couples filing a joint return and to $2,560 per beneficiary for married couples filing a separate return.
2. 100% Tax-Deferred Growth
All account earnings in an Edvest 529 account grow 100% tax-deferred at both the federal and state level, which means the payment of taxes on earnings is postponed until a later date. This results in potential account earnings being reinvested to help grow the account.
3. Tax-Free Withdrawals for Qualified Expenses
Earnings accrued in an Edvest 529 account can be withdrawn from an account 100% tax-free at both the federal and state level when paying for qualified higher education expenses and for direct Roth IRA rollovers. Limitations apply.1
Qualified higher education expenses include tuition, fees, books, supplies, equipment, certain 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).2
“Tax season can be an ideal time for families in Wisconsin to kick off their savings journey for college and career training,” said Wisconsin Department of Financial Institutions Secretary Cheryll Olson-Collins. The Wisconsin Department of Financial Institutions administers the Wisconsin 529 College Savings Program, which includes the Edvest 529 college savings plan. “By starting early, families can take full advantage of compound growth and the numerous benefits provided by the Edvest 529 College Savings Plan,” Olson-Collins added.
About Edvest 529
For more than 25 years, Edvest 529 – Wisconsin’s only direct-sold 529 college savings plan – has been helping families save for higher education expenses. Account owners can choose from 24 investment portfolios, access easy-to-use savings tools and take advantage of triple tax benefits. Edvest 529 has received numerous accolades, including being named Bronze by Morningstar Investment Research and earning “High Honors” rating by SavingForCollege.com.3
Edvest 529 is a tax-advantaged investment, meaning contributions to an account may qualify for a 2024 Wisconsin state income tax deduction of up to $5,000 per contributor per beneficiary, per year, for single filers or married couples filing a joint return. The plan has no sales charges, enrollment fees, or annual account maintenance fees. In fact, Edvest 529 is the fifth lowest-cost 529 college savings plan in the nation.4
Want more details?
Check out our “What is the best option for college savings” video in our new College Savings Connection video series for more of a breakdown of what a 529 plan is, and its tax benefits.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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