This Giving Season, Boost Employee Benefits with The Education Plan®, 529 Education Savings Plan
82% of younger workers expect a current or future employer to play a role in supporting their financial security and wellbeing, according to a Harris Poll Survey. The study also showed 8 in 10 workers would be less likely to look for a new job if their current employer began offering more financial wellness tools. 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.
Including a 529 education savings plan as part of a benefits package provides employers with a simple way to support the financial well-being goals of their employees and can help alleviate the burden of student loan debt.
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.
Offering a 529 plan, like New Mexico’s The Education Plan®, as an optional benefit is a gift that can make a profound difference for employees and their families and it’s at no additional cost to the employer. Plus, it requires no government reporting, making it a quick and easy employee benefit to offer. 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. Joanie Griffin, founding principal of Sunny 505 and a Family Friendly Business Award® Platinum recipient, talks about just how easy it can be for an employer to offer the 529 plan as a benefit and how employees have utilized it in a recent interview.
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. The Education Plan has dedicated outreach staff available to provide information, conduct educational workshops, and attend wellness events. 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.
Enabling employees to make deposits directly into their children’s or grandchildren’s 529 plans through payroll direct deposit is a great way to help employees and their families save more consistently. Employers also have the option to make matching contributions into their employees’ 529 accounts if they choose.
Benefits of The Education Plan®:
- Competitive voluntary employee benefit helps attract and retain talent
- No set up or plan costs for employer
- Easy set up and administration for employer
- No fiduciary responsibility or government reporting for employer
- Potential tax benefits for employees
- Easy online enrollment for employees
- Automatic direct deposit helps employees keep savings consistent and on track
- Reduces the burden of student loan debt
- Dedicated outreach staff available to conduct employee education workshops and provide information
Contributions to a 529 plan 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 funds in a 529 plan have the potential to grow faster with the added advantage of compounding growth.
Studies show that even minimal contributions saved in 529 plans significantly boost college attendance and graduation rates while alleviating the burden of student debt.
With no minimum contribution required, an account can be opened at any time and savings can grow with the help of gift contributions from family and friends.
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.
“Supporting employees’ financial security is key to retaining top talent, and a 529 education savings plan offers a unique way to do that. By providing access to The Education Plan®, employers can help ease the burden of education costs for their employees and their families. It’s a forward-thinking benefit that empowers employees to invest in their future, while fostering loyalty and long-term growth within the business.”
-Giovanna Rossi, Founder and Board President, Family Friendly New Mexico
By adopting and offering The Education Plan, Family Friendly businesses 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 offering The Education Plan as an employee benefit, visit http://www.theeducationplan.com/foremployers or call (505) 412-5121. Please mention that you are a Family Friendly New Mexico business.
To learn more about how your business can adopt more family friendly policies visit Family Friendly New Mexico Business Toolkits. And apply for the Family Friendly Business Award® to get recognized for all of your existing efforts.
Carolyn Fittipaldi is the marketing director for The Education Trust Board of New Mexico. The Education Trust Board is the governing body for the New Mexico 529 education savings program. The State of New Mexico sponsors two plans: a direct-sold plan (The Education Plan) and an advisor-sold plan (Scholars Edge).
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, 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 is a volunteer mentor in the Big Brothers Big Sisters of Central New Mexico Mentor2.0 Program. Mentor2.0 matches high school students with college-educated mentors and provides them with the support and guidance they need to graduate high school and succeed in college and the workforce.
Carolyn graduated from the University of New Mexico with a BA in Communication/Journalism. She has lived in New Mexico for over 30 years.