- HR platform Gusto partnered with investment advisor Gradvisor to offer a 529 plan as an employee benefit to businesses. The plan allows employees to save for their children’s college education without paying federal income tax.
- Gusto says 89% of businesses don’t offer employees a benefit that helps them save for their children’s college education. College savings 529 plans are meaningful perks that organizations can offer their employees, says the company.
- Parents with college savings plans put away 76% more than parents who don’t have such plans. Many states, like Nevada, give employers with college savings plans a 25% tax credit up to $500 per employee. Such a program builds loyalty and culture among employees.
A college education is a massive investment for many families; it’s also out of reach for many parents and their children. An employer-sponsored program that encourages tax-free savings can be an invaluable benefit for workers who may be trying to find a way to save.
Such a plan could play an important part of any financial wellness program, especially for programs that want to go beyond the usual retirement offerings. Adding 529 plans could help an employer communicate that they value their employees at every step of their life, and therefore could assist with retention.