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New Mexico’s Best-Kept Secret: More Education, Less Debt with The Education Plan

 
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Looking for an easy way to strengthen your current and future association membership? Associations could consider informing their members about the benefits of saving towards education goals through The Education Plan, New Mexico’s best-kept secret.

The Education Plan is New Mexico’s 529 education savings plan, administered by The Education Trust Board of New Mexico. It is intended to help more New Mexicans achieve their higher education goals and to reduce the burden of student debt.

Since its creation 23 years ago, the plan has grown to more than 24,000 accounts with close to $600 million in total assets.

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 contributions from family and friends. Plus, contributions are fully deductible on New Mexico state income tax returns. Investment growth and distributions are tax-free as long as the account is used for qualified education expenses.

Anyone who is receiving a tax refund or stimulus check this year, and is fortunate enough not to need the money for living expenses, should think about opening a 529 account for a loved one or making a contribution to an existing account.

The Education Plan is both flexible and versatile, individuals can open an account for anyone – a child, other loved ones, or even themselves. Plan funds can pay for qualified expenses including tuition, housing, books, computers, fees and more, and can be used at any accredited college, university, trade or vocational school anywhere in the country or online, and even many internationally.

If a plan beneficiary doesn’t use the money in the account, the account owner can change the beneficiary to another member of the family. In addition, 529 plan savings have a minimal effect on financial aid eligibility if owned by a parent or the student.

Associations can easily promote a strong workforce by educating their members on how to enhance their benefits package by including The Education Plan. Dedicated outreach staff members are available to conduct educational workshops, supply information and provide hands-on enrollment assistance. If more associations and employers followed suit, it could have an unprecedented impact on workforce and economic development in New Mexico.

To learn more about offering The Education Plan as an employee benefit, visit www.theeducationplan.com/employers or call (505) 412-5121. Please mention that you are a member of the New Mexico Society of Association Executives.

Features for Employers:

  • No cost to you, the employer

  • Potential tax benefits for you and your employees

  • No fiduciary responsibility

  • Easily enhance your benefits package

  • Empower your employees and their loved ones to further their education with less debt

  • Gives you a competitive edge for recruitment & retention

  • Matching contributions optional

 

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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

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Phone: 1-877-337-5268
We're available Monday to Friday 8 a.m. to 7 p.m. MT

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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.

The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

All other marks are the exclusive property of their respective owners.

Not FDIC-Insured. No Bank, State or Federal Guarantee. May Lose Value.