If you're investing through work...

Shouldn't saving for college be automatic? Now it can be, if your plan (and your company) offers automatic payroll deduction.¹ A number of companies, from Fortune 500 corporations to non-profit organizations are able to support the ability for employees to contribute to a 529 plan through ongoing payroll deduction. If your plan and company both support automatic payroll deduction, you can choose an amount (with after-tax dollars) to be withdrawn automatically from every check and invested directly into your 529 plan account.

Payroll deduction
If you are interested in investing through your employer, you generally can sign up for payroll deduction when you first enroll in a 529 plan. Initiating payroll deduction at the time of enrollment is often a simple way to minimize the initial investment required to open an account.

If you don't want to enroll in payroll deduction right away, or already have an account, you can often enroll in payroll deduction at any time by logging into your account or submitting a form available on your plan's website.

Spread the word
If you think your co-workers would also benefit from saving for college at work, talk to your employer about providing company-wide education about contributing to a 529 plan through payroll deduction. A quick call to the 529 plan may get your employer flyers and posters. Informational sessions are also available for some plans.

Please note that your payroll deduction plan is subject to your employer's acceptance, as not all payroll systems are properly equipped. If you have questions, check with your Human Resources or Payroll departments.

If your company does not offer payroll contributions, you can still put your college savings on autopilot. Consider an Automatic Investment Plan (AIP) for your 529 plan contributions and you can save little by little. Learn more about AIP.


¹ A plan of regular investment cannot assure a profit or protect against a loss in a declining market.