Benefits of Wisconsin’s 529 College Savings Plans

Range of investment options: Choose from portfolios that range from conservative to more aggressive allocations to align with your time frame and investment objectives. Both passive (indexed) and actively managed portfolios are available, along with stable value choices. Institutional class investment fees can make college savings more affordable.

Flexible contribution amounts and methods: An Edvest 529 account may be opened with $25, and contributions can be made through ACH from your bank account, via check, through payroll direct deposit, online through Ugift, and via rollover from another 529 plan. A Tomorrow's Scholar account may be opened with $250 per Option selected for investment. The minimum initial contribution is waived for Account Owners that make contributions through AIPs or payroll direct deposits of $25 or more per month. Once an account is opened, you control subsequent contribution amounts and the frequency of automatic or lump-sum contributions.

No income or time limits: Any adult with a social security number or tax identification number may open a 529 plan and there are no income level restrictions opening an account. An account owner must be 18 years or older, but there is no age requirement for the beneficiary. Funds saved in a 529 college savings plan are not required to be used by any certain time (for example, when the Beneficiary is expected to enroll in post-secondary education).

Federal and state tax advantages:

Wisconsin State Income Tax Deduction: Wisconsin taxpayers are eligible for a state income tax deduction for contributions to a Wisconsin 529 college savings plan account (current amounts listed above).

Tax-deferred growth: If the money in your account grows over time through earnings, you will not be taxed on the growth (earning portions) while the funds are in the account.

Tax-free withdrawals for qualified educational expenses: When you use your funds to pay for qualified higher education expenses (listed above), you do not have to pay state or federal taxes on the earnings at all.

FAQs for Wisconsin 529 College Savings Plans