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College Savings Plans – 529 Plans
- What is a 529 College Savings plan?
These plans allow you to save for higher education expenses through a S. tax advantaged account. 529 plans are named after the section of the Internal Revenue code that created them. - How do I open an EdVest 529 College Savings Plan?
You may open an account by contacting our office. We are authorized to sell Edvest 529 College Savings Plans in the state of Wisconsin. - How do I contribute to an EdVest account?
The minimum initial contribution to the EdVest program is $250.00. Contributions may only be made in (a cash form) by check, automatic investment plan (AIP), payroll direct deposit, or electronic funds transfer. The program does not accept cash, starter check, credit card checks, or checks drawn on banks outside the United States. - Can I change the account owner?
An account owner may designate a successor account owner (to the extent permissible under applicable law), to succeed to all of the current account owner's rights, title, and interest in an account (including the right to change the designated beneficiary upon the death of the current account owner). - Can someone other than the account owner contribute to the EdVest account?
Yes, anyone can contribute to the account, however, only the account owner can make decisions regarding the account, including taking withdrawals from the account, changing the account's investments and changing the beneficiary. - Can an EdVest account be owned jointly?
No, joint ownership is not permitted. - Who can be the beneficiary?
The account can be opened for the benefit of any U.S. citizen or legal U.S. resident, including the account owner. The beneficiary does not need to be related to the account owner. - Can I change the beneficiary of my EdVest account?
Yes, the account owner can change the beneficiary of an EdVest account at any time. To avoid federal income tax and a 10% federal tax penalty on earnings, the new beneficiary must be a member of the family of the previous beneficiary. The following individuals are considered to be members of the family:- A son or daughter or a descendant of either
- A stepson or stepdaughter
- A brother, sister, stepbrother, or stepsister
- A father or mother or an ancestor of either
- A stepfather or stepmother
- A brother or sister of the father or mother
- A son or daughter of a brother or sister
- A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
- The spouse of the beneficiary or the spouse of any individuals described above; or a first cousin of the beneficiary
- A legally adopted child is treated as the child of the adoptive parent as if by blood. The terms "brother" and "sister" include half brothers and half sisters.
College savings plans are sponsored by each state. In some cases, you may be able to take an income tax deduction for your contribution. The monies grow free of current income tax and if used for certain post high school education expenses, can be withdrawn from these accounts on an income free tax basis. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an Eligible Education Institution. Expenses for special needs services in the case of a special needs beneficiary who incurs such expenses in connection with enrollment or attendance at an Eligible Education Institution.
Request A Quote!Also included as a qualified higher education expense is an amount for the room and board the designated beneficiary may incur while attending an Eligible Education Institution at least half-time. A designated beneficiary will be considered to be enrolled at least half-time if he or she is enrolled for at least half the full-time academic workload for the course of study being pursued as determined under the standards of the Eligible Educational Institution where he or she is enrolled.
In Wisconsin, contributions to an account will be permitted if the aggregate balance of all Wisconsin Savings College Program accounts for the same designated beneficiary does not exceed the maximum allowable contribution limit – currently $246,000. The maximum allowable contribution limit is based on the aggregate market value of the account(s) for a designated beneficiary, not on the aggregate contributions made to accounts.
Eligibility for Financial Aid:
Wisconsin law specifies that program assets will NOT affect a beneficiary’s eligibility for state funded financial aid. It is possible that account assets may have an adverse effect on the beneficiary’s eligibility for other financial aid programs. Policies on the treatment of program assets will vary at different institutions. Account owners and beneficiaries should check on applicable laws, regulations, financial aid programs, and institutional requirements concerning the impact of program assets on eligibility.
Kent A. Baumann, CLU
Chartered Financial Consultant
President, Bonniwell Financial Services
1025 W. Glen Oaks Lane Suite 205
P.O. Box 38
Mequon, WI 53092
Phone: 262.241.8488 | Fax: 262.241.8066
kentbaumann@yahoo.com