Save More While Saving for College – Wisconsin College Savings Program 2018 Tax Deduction Raised to $3,200

PR Newswire

MADISON, Wis., Feb. 26, 2018 /PRNewswire/ -- The Wisconsin College Savings Program is excited to announce that the 2018 state tax deduction has been raised to $3,200 – making it even easier to save for college while enjoying significant tax savings. The increase in deductible taxable income will apply to contributions made to Edvest and Tomorrow's Scholar accounts during the 2018 tax year.

For the 2017 tax year, plan participants have until Tuesday, April 17, 2018 to make contributions to be eligible for a reduction in their taxable income of up to $3,140. Limitations apply.*

"The increase in the tax benefit is one more reason saving for college with the Wisconsin College Savings Program is a great decision for families," said Jessica Fandrich, officer for the State of Wisconsin 529 College Savings Program, DFI. "We're proud to offer this opportunity for our Wisconsin account holders, and look forward to continuing to help families save more while they're saving for college."

What This Means for Account Holders

Wisconsin residents, regardless of their relationship to the child, may be eligible to reduce their state taxable income by up to $3,200 per beneficiary per year ($1,600 for single filers). Families with more than one account may be eligible for a state tax deduction of up to $6,400 for two children, $9,600 for three children, and so on.

Additionally, investment earnings grow tax-deferred and are tax-free at both the state and federal level when used to pay for qualified expenses.

Carry Forward for Future Tax Benefits

For families who roll over balances from another 529 plan, or plan to make a large contribution from savings, inheritance or a work bonus, they have the option to apply those contributions to future tax returns. If an account holder's annual contributions exceed $3,200 per beneficiary, they are eligible to carry forward the balance until exhausted.

Accelerate Your 529 College Savings

Account holders who are interested in making a larger contribution to their child's account, but are concerned with how it will impact them during their estate planning, should be aware that currently there is no federal gift tax on contributions up to $15,000 per year for single filers and $30,000 for married filers. For those interested in super funding by making a larger contribution, there is an option to gift amounts of up to $75,000 for single filers and up to $150,000 for married filers if pro-rated over five years. This means an account holder could make a one-time gift equivalent to the five-year amount and still qualify for the federal gift tax exclusion.

It is recommended that account holders interested in super funding their accounts speak with their financial planner, tax attorney or estate planning attorney before doing so.

Why Save With Wisconsin College Savings Plans?

In addition to significant tax benefits, Edvest has received numerous accolades from industry-leading sources. SavingforCollege.com recently ranked Edvest as one of the Top 10 in three- and five-year 529 Performance¹, and awarded the program a 5-Cap Rating for "outstanding flexibility, attractive investments and additional economic benefits" (SavingforCollege.com, What the Ratings Mean, 12/22/2017)². Edvest also received a Bronze rating from Morningstar, Inc.³

Tomorrow's Scholar is ranked in the Top 10 of Advisor-Sold plans based on investment performance over three years as of December 31, 2017, and was awarded a 4½-Cap Rating for residents for reliability by SavingforCollege.com⁴. Voya also received the prestigious DALBAR award for 529 servicing for the third year in a row.⁵

Saving early makes a difference and Wisconsin's College Savings Plans make it easy. Funds saved through either program can be used at colleges, technical schools and graduate schools throughout the nation, as well as many abroad. Additionally, funds can be used for books, supplies, or other qualified expenses.

For more information about Edvest or to open an account, visit Edvest.com. Edvest's college savings specialists also are available Monday through Friday 7 a.m. to 7 p.m. toll-free at (888) 338-3789.

For information about Tomorrow's Scholar, visit Tomorrowsscholar.com or call (866) 677-6933 Monday through Friday from 7 a.m. to 5 p.m. or speak with your financial advisor.

About Edvest
Edvest is Wisconsin's 529 College Savings Plan designed to help families save for higher education expenses. Account owners can choose from 17 investment portfolios, enjoy one of the lowest cost 529 plans in the U.S., and take advantage of in-state tax benefits for Wisconsin residents.

About Tomorrow's Scholar
Tomorrow's Scholar is an advisor-sold 529 college savings plan sponsored by the State of Wisconsin and distributed nationwide. Tomorrow's Scholar provides families with flexible means to save and invest for a child's college education while taking advantage of multiple tax and estate benefits. Working with a Financial Advisor, families can tailor a portfolio to their particular situation with investments that feature some of the largest and most respected asset management firms.

¹2017 Plan Performance Rankings Q4, Savingforcollege.com, 2/15/2017. Edvest ranking is based on a performance score calculated by investment performance for 46 direct-sold 529 plans (3-year ranking) and 48 direct-sold 529 plans (5-year ranking). The Savingforcollege.com plan composite rankings are derived using the plans' relevant portfolio performance in seven unique asset allocation categories. The asset-allocation categories used are: 100 percent equity, 80 percent equity, 60 percent equity, 40 percent equity, 20 percent equity, 100 percent fixed and 100 percent short term. The plan composite ranking is determined by the average of its percentile ranking in the seven categories. Past performance does not predict future results.

²Savingforcollege.com, July 12, 2017.The Edvest College Savings Plan received a 5-Cap Rating for Wisconsin residents and 4.5-Cap Rating for non-residents. A 5-Cap Ratings represents the attractiveness of a 529 plan, relative to all other 529 plans, by assigning an overall rating to each 529 program ranging from 1 Cap (least attractive) to 5 Caps (most attractive). 5-Cap Ratings represent an assessment based on many considerations such as flexibility, liquidity and availability, ownership rights, state benefits, investment approach and safety, program resources and financial aid impact. It is not strictly a measure of historical returns, and it is not a predictor of future investment performance, level of investment risk or financial solvency of the program funds. These ratings are not the result of a fixed formula and a significant portion of the analysis is subjective. Before establishing a 529 account and making contributions, it is imperative that investors read and understand all enrollment materials and disclosures from the programs.

³In an annual review (10/24/2017) of the largest 529 college-savings plans (62 total), Morningstar identified 34 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2017. These forward-looking, qualitative ratings signal Morningstar's conviction in the plans' abilities to outperform their relevant benchmark and peer groups on a risk-adjusted basis over the long term. Morningstar evaluates college-savings plans based on five key pillars – Process, Performance, People, Parent, and Price. For more information about Morningstar's overview of Edvest go to 529.morningstar.com/edvest. Past performance does not predict future results. Source: morningstar.com/news

⁴Savingforcollege.com, July 12, 2017. The Tomorrow's Scholar College Savings Plan received a 4.5-Cap Rating for Wisconsin residents and 4-Cap Rating for non-residents. A 5-Cap Ratings represents the attractiveness of a 529 plan, relative to all other 529 plans, by assigning an overall rating to each 529 program ranging from 1 Cap (least attractive) to 5 Caps (most attractive). 5-Cap Ratings represent an assessment based on many considerations such as flexibility, liquidity and availability, ownership rights, state benefits, investment approach and safety, program resources and financial aid impact. It is not strictly a measure of historical returns, and it is not a predictor of future investment performance, level of investment risk or financial solvency of the program funds. These ratings are not the result of a fixed formula and a significant portion of the analysis is subjective. Before establishing a 529 account and making contributions, it is imperative that investors read and understand all enrollment materials and disclosures from the programs.

⁵Dalbar.com, Dalbar Service Award for 2016.

*To learn more about the Wisconsin College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Disclosure Booklet at Edvest.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. If the funds aren't used for qualified education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for the Wisconsin College Savings Plan. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein. 419144

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