Tags: Retirement | 529 plan | facts | wisconsin

Facts About Wisconsin's 529 Plans

By    |   Friday, 29 May 2015 09:15 AM

Saving money for college is a concern for many parents, but it can be difficult given the cost of living in the 2000s. One way parents can set money aside for their children's education is through a 529 plan.

Also known as the "qualified tuition program," 529 plans have been around since 1996. Each state has its own 529 plan and some states, such as Wisconsin, have more than one.

Free Retirement Calculator: When Can You Retire? — Click Here to Find Out

Here are some facts about the state's plans so that you can decide which one is best for you:

1. 529 Plans at a Glance

As noted by the Internal Revenue Service, anyone can be named as a beneficiary of a 529 plan, and a benefactor can set up as many plans as he or she wishes. There are no income restrictions imposed on the person setting up the plans.

There are contribution limits, usually limited to the amount needed for the qualified educational expenses required for the person benefiting from the plan. Each state can offer two different plans although some only offer either a saving plan or a prepaid tuition plan.

2. Two Plans Available to Residents

For residents of Wisconsin, there are two options available when it comes to 529 plans: a consumer plan known as Edvest and an adviser-sold plan known as Tomorrow's Scholar 529 Plan.

The Edvest plan is managed by TIAA-CREF and has a number of different options available, including six different fund options utilizing mutual funds from DFA, PIMCO, and TIAA-CREF, 12 static portfolio options, and a pair of age-based options.

The Tomorrow's Scholar 529 plan is also overseen by TIAA-CREF. A more diverse plan, it features nine static allocation options, nine age-based options, and more than 20 single fund options. Those single fund options include mutual funds managed by Baillie Gifford, BlackRock, Columbia, CRBE Clarion, and TIAA-CREF, among others.

How Soon Can You Retire? Free Test Shows You When — Click Here

3. Wisconsin 529 Plan Changes

As part of Wisconsin 2013 Act 227, there were a number of changes to the state's 529 plans. Although contributions to these plans are deductible for state-taxable income on a dollar-for-dollar basis, the annual amount is indexed as part of an inflation calculation.

This means that larger amounts from a particular tax year can be carried forward as a subtraction for the succeeding taxable years. In the 2015 tax year, the maximum subtraction for single or joint filers was $3,100 and $1,550 for divorced single parents or married parents filing single.

Any adult is allowed to take advantage of the subtraction, not just immediate family members. In addition, the year-end contribution period now extends to April 15 of the following year.

An Extremely Simple Way to Determine If You're Ready to Retire — Find Out Now

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
FastFeatures
Saving money for college is a concern for many parents, but it can be difficult given the cost of living in the 2000s. One way parents can set money aside for their children's education is through a 529 plan.
529 plan, facts, wisconsin
473
2015-15-29
Friday, 29 May 2015 09:15 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved