For many businesses, the past year has proven challenging, and while many are looking for ways to show their appreciation and dedication to their employees, most budgets are tight. However, New Mexico businesses have the option to add a meaningful employee benefit at no extra cost by offering the state’s 529 college savings plan – The Education Plan®.

“Providing employees with an opportunity to easily save for future education expenses for themselves or their children is a thoughtful benefit that has the power to boost employee morale and retention,” said Ted Miller, Executive Director of the Education Trust Board of New Mexico, the state agency that sponsors The Education Plan®. “For employers, employees with robust benefits are often more engaged and work harder. Additionally, The Education Plan® can be implemented at no cost to employers and requires no government reporting, making it a quick and easy way to show your gratitude to those who keep your business thriving. Offering a 529 savings account as part of a competitive employee benefits package is a great way to attract and retain good employees.”

529 accounts can be used to cover the costs of higher education, including tuition, housing, meal plans, books, supplies, computers, and fees. Contributions can be made directly from payroll, and employees can start saving with as little as $1 to open an account. The Education Plan® also provides tax advantages for New Mexicans. Contributions are tax deductible from New Mexico income tax, the funds grow tax-free, and withdrawals are tax-free if used to cover qualifying education expenses.

“Student loan debt is a harsh reality for many American families,” added Miller. “By adding The Education Plan® for your employees, you can help to eliminate the stress of saving for education expenses and help to ease the burden of future loans.”

The Education Plan® Provides:

• An employee benefit with no cost to the employer
• Potential tax benefits for employees
• No ERISA fiduciary responsibility or government reporting for the employer
• An enhanced benefits package
• Employees the chance to further their education or their loved ones’ educations with less debt
• The company a competitive edge for recruitment & retention

To learn more about adding the Education Plan as part of your employee benefits package, visit TheEducationPlan.com/foremployers.