Santa Fe, NM - March 5, 2024  — March begins with Employee Appreciation Day, creating an opportune time for companies to reevaluate their employee benefits. A recent Gallup article stated the top reason people left a job in 2022 was related to gaining better pay and benefits. In a world where retaining employees is imperative both for stability in the business and to reduce turnover costs - unique and competitive employee benefits can be a strategic tool.  

Offering New Mexico’s 529 education savings plan - The Education Plan® - as an optional benefit can make a profound difference for both employees and their families and it’s at no additional cost to the employer. With this tax-advantaged plan, employers can help their employees prepare for their future or the future educational needs of loved ones easily through payroll deduction.  

Including a 529 plan as part of a benefits package provides employers with a simple, no-cost way to support the financial well-being goals of their employees and can help alleviate the burden of student loan debt. Plus, it requires no government reporting, making it a quick and easy employee benefit to include. Contributions to 529 plans grow tax-free, withdrawals for qualified education expenses are also tax-exempt, and all contributions to a 529 account with The Education Plan are eligible for tax-deduction on New Mexico state income tax returns. This unique tax treatment allows families to maximize their savings potential. And savings can grow faster with the added advantage of compounding growth. The Education Plan simplifies the process of providing a valuable benefit that empowers employees to pursue education goals and/or support their loved ones in reaching their goals with reduced financial stress.

"Education is a cornerstone for personal and professional growth and providing direct access to a 529 plan is a meaningful way for companies to invest in the well-being and future of their employees," says Natalia Cordova, Executive Director, New Mexico Education Trust Board, the organization that administers The Education Plan.

Studies show that even minimal contributions saved in 529 plans significantly boost college attendance and graduation rates while alleviating the burden of student debt. By adopting and offering The Education Plan, employers can play a pivotal role in shaping a skilled and satisfied workforce that benefits their employees and their employees’ families for years to come. 

To learn more about The Education Plan, visit TheEducationPlan.com .