Written by Carolyn Fittipaldi, marketing director for The Education Trust Board of New Mexico.
Express Gratitude for your Employees by Offering The Education Plan®, 529 Education Savings Plan
As post-pandemic workplace trends continue to influence workers to search for better employment opportunities, employers continue to seek innovative, meaningful ways to express their gratitude toward their employees. By offering unique employee benefits–like 529 education savings plans–employers can provide their team members with impactful economic support benefits to further their financial well-being while also remaining competitive during recruitment.
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. By offering The Education Plan, 529 education savings plan, you can support the financial well-being of your employees and empower them to meet their future education goals and those of their loved ones.
82% of workers between the ages of 18 to 34 expect a current or future employer to play a role in supporting their financial security and wellbeing, according to a 2022 Harris Poll Survey. More than 8-in-10 workers would be less likely to look for a new job if their current employer began offering more financial wellness tools, the study showed.
The Education Plan can be implemented at no cost to employers and requires no government reporting, making it a quick and easy employee benefit to include. You can play a key role in strengthening your current and future workforce by focusing on family friendly workplace policies and economic support benefits with one easy step. Enabling your employees to make deposits directly into their children’s 529 college savings plans through payroll direct deposit is a great way to help your employees and their families save more consistently and reduce the 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.
“As a small business, having The Education Plan as a benefit sets us apart from our competitors in this tight job market, said Joanie Griffin, CEO for Sunny 505 and a Family Friendly New Mexico awardee. “My employees love it and they can contribute to the plan at whatever level works for them. It’s no cost to me, so it’s truly a win-win for everyone.”
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. 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.
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 plan funds can be used at vocational or trade schools, professional schools, colleges or universities nationwide to pay for education expenses including tuition, housing, meal plans, books, supplies, computers, and fees. Employees can use the money saved in a 529 plan to pay for their own education, a child’s education or any other loved one’s future education.
Many parents and grandparents see the steady rise in tuition and want to give their family and loved ones a head-start with funding for college. 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.
Businesses that focus on their family friendly policies 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 or call (505) 412-5121. Please mention that you are a Family Friendly New Mexico business.
The Education Trust Board of New Mexico
Carolyn is a seasoned marketing executive with extensive experience developing and implementing marketing and public relations strategy in multiple industries; including home improvement, broadcast media, hospitality/tourism, non-profit health and state government in New Mexico and California. In her current role as marketing director, Carolyn is on a mission to help families plan and save for education so they can reach their goals and career aspirations without the burden of student debt. Carolyn graduated from the University of New Mexico with a BA in Communication/Journalism. She has lived in New Mexico for over 30 years.