By offering unique employee benefits–like a 529 education savings plan–employers can provide their team members with impactful benefits to further their financial well-being while also remaining competitive during recruitment.
In today’s competitive marketplace, where employers are striving for new ways to retain their workforce, a 529 education savings plan can be a great addition to a company’s suite of benefits. The Education Plan®, 529 education savings plan can be implemented at no cost to employers and requires no government reporting, making it a quick and easy employee benefit to include. Plus, employers can choose to match all or a percentage of employees’ contributions. With The Education Plan, employers can help their employees prepare for their future or the future educational needs of loved ones easily through payroll deduction. Employers can play a key role in strengthening the current and future workforce with one meaningful step.
Enabling employees to make deposits directly into their children’s or grandchildren’s 529 education savings plans through payroll direct deposit is a great way to help employees and their families save more consistently and reduce the future burden of student loan debt. The Education Plan has dedicated outreach staff available to conduct educational workshops, supply information and provide hands-on enrollment assistance.
With rising college tuition costs and the current student debt averaging over $37,000, an account with The Education Plan can help alleviate the burden and stress of planning for future education costs for employees, making it a win-win for both the employer and employee. The Education Plan can easily enhance an employee benefits package in a unique, innovative, and future-thinking way.
Studies show that with just $500 saved, a child is three times more likely to attend college or vocational school and four times more likely to graduate. With no minimum contribution required, an account can be opened at any time and savings can easily grow with the help of gift contributions from family and friends. Investment growth and distributions are tax-free as long as the account is used for qualified education expenses. Plus, contributions to The Education Plan® are fully deductible on New Mexico state income tax returns.
529 education savings plans are flexible, giving employees an option to save for the future—even if they might not have it mapped out yet. 529 plans can be used at vocational or trade schools, professional schools, colleges, or universities nationwide to pay for qualified education expenses including tuition and fees, housing, meal plans, books, supplies, computers, and more. 529 funds can also be used to pay for K-12 tuition and apprenticeship expenses.
“A 529 education savings plan is a meaningful and useful benefit to thank your employees for their hard work and help your business stay competitive with its benefits package,” said Natalie Cordova, Executive Director of the Education Trust Board of New Mexico, the organization that administers The Education Plan®. “In today’s job market, employees are seeking competitive benefits, and offering your team members an opportunity to save for future expenses can be a huge boost that will contribute to their success.”
Employers can easily promote a strong workforce by enhancing their benefits package and including The Education Plan.
To learn more about offering The Education Plan as an employee benefit, visit www.TheEducationPlan.com/foremployers.