Even as savings rates across the country have gone down in recent years, the state of Wisconsin is trying to encourage more people to put away money for college.
In recent months, Wisconsin lowered the threshold for investing in the state’s 529 plan.
There are around 80 different college government-based savings plans established throughout the country, and Wisconsin has two of them: Edvest and Tomorrow’s Scholar.
Jim Diulio, director of Wisconsin’s 529 College Savings Program, lists four reasons why parents should consider opening a government-based savings program in Wisconsin:
- The accounts are professionally managed investments that can be customized for families.
- There are tax advantages at the state and federal level. There is a tax deduction up to $3,000 for each student each year.
- Institutional pricing is lower.
- Wisconsin has some of the lowest fees in the country. With $25, a family could open a savings account.
Jim Duilio is the Director of Wisconsin’s 529 College Saving Program.
