Santa Fe, NM — Employers of all sizes are continuously looking for ways to recruit and retain employees by offering cost-effective and competitive benefits. Employers can celebrate their employees by enhancing benefits packages.

One burden on many families is the sizeable cost of future education expenses. A tool that can help employees save for education and reduce the burden of student loan debt is a tax-advantaged 529 education savings plan. 

Studies have shown that increasing education savings, such as 529 plan participation, significantly increases college attendance and graduation rates. 

The Education PlanⓇ is a 529 education savings plan sponsored by the State of New Mexico and administered by the New Mexico Education Trust Board. Anyone in the US, age 18 with a social security number or tax identification number, can open an account with The Education Plan®.

The Education PlanⓇ offers a way for employers to support the financial wellbeing of their employees while remaining competitive with their benefits. Enabling employees to make deposits directly into their children’s 529 education savings plans through payroll deduction is easy to set up.  

Benefits of The Education Plan’s 529:

• Tax advantaged savings for the employees 

• Simple, easy-to-navigate enrollment process for employees

• Automatic direct deposit helps employees keep savings on track

• No set-up costs for employer 

• Easy administration for employer

• No government reporting 

• Optional employer matching contributions  

“One of the greatest gifts employers can give their employees is helping them meet current and future economic expenses,” said Carolyn Fittipaldi, Marketing Director of the New Mexico Education Trust Board. “A 529 education savings plan offers employers an easy no-cost avenue to enhance employee benefits options and can be set up for employees to contribute directly from their paycheck.”

Employees can regularly contribute to their 529 education savings plan through payroll direct deposit, streamlining savings. Contributions to a 529 education savings plan are considered gifts for tax purposes, as well, up to the U.S. Internal Revenue Service annual gifting limits, currently $19,000 for individuals and $38,000 for couples. 

Once a 529 education savings plan account is set up, friends and relatives can also make gift contributions to a loved one’s 529 account. Those contributions may also qualify for tax exclusions and represent an additional method for employees and their families to help plan for their educational futures.

A wide range of education expenses are covered under 529 education savings plans. Qualified expenses include tuition and fees, which are often the most expensive part of education, room and board, books and supplies, and other miscellaneous expenses like technology costs. Repaying student loans also qualify under 529 savings plans. So does K–12 tuition — it’s not just higher education costs.          

        
For more information about The Education PlanⓇ, visit www.TheEducationPlan.com.