529 plans and payroll direct deposit: A no-cost benefit to employers
To retain the best employees, you have to offer a competitive benefits menu while keeping administrative costs low. At the same time, the rising cost of higher education has your employees scrambling to save - not just for their children or grandchildren, but also for their own professional retraining.
That's why there is no better time than now to offer a 529 plan through payroll direct deposit.1
Easy, and no extra cost to you
Administering a 529 plan benefit is easy. Payroll direct deposits are made using the Automated Clearing House (ACH) system (which you probably already use for direct deposits), so minimal setup is required.
A 529 plan payroll direct deposit benefit offers your employees:
- The ability to save for their children's, grandchildren's, or family member's higher education.
- The opportunity to save for their own (or their spouse's) career retraining, higher education, and eligible professional accreditation courses.
- The chance to contribute automatically for as little as $25 per paycheck.
A solution for multi-state organizations
If your organization spans several states, you may be wondering how to offer multiple 529 plans to your employees. 529.com has a solution for you. Just link your intranet to it:
- Your employees can click on their home state on the 529.com map. If that state is one where we administer a 529 plan, they can go directly to that plan's site to enroll and set up payroll contributions.
- If their home state is not one where we administer the 529 plan, they will be directed to resources for more information on plans available in their home states.
We're here to help
It's easy to add a 529 plan payroll direct deposit benefit into your current benefits menu. Just contact us at firstname.lastname@example.org. We'll help you link your benefits intranet site to 529.com. We'll also help you promote this great benefit to your employees.
1 A plan of regular investment cannot assure a profit or protect against a loss in a declining market.
2 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.