WHY THIS MATTERS?
Are you prepared or doing all you can to develop the skills needed to stay relevant in today’s economy and protect the investment in your career?
- Organizations that focus on and prioritize learning and development (L&D) achieve greater worker retention. 90% of employees say they will stay at their jobs if they can learn and grow there. Source: LinkedIn
- Lifelong learning is important. 45% report being highly satisfied at their job when engaged in education offered by their employer in the last 12 months, compared to 27% who did not. Sources: Gallup, Brandon Busteed
- 87% of low to moderate income families say they would enroll in a 529 if their employer matched their contribution. Source: Commonwealth.
- “This is truly a win-win for employers and employees. By introducing a tax credit for employer contributions to 529 accounts, we are reducing the financial burden of education, and promoting a more skilled and educated workforce in Pennyslania.” Source: Marty Flynn, Pennsylvania State Senator
- “We believe a higher employer tax credit will compel more employers to help their employees save for higher education and career training.” Source: Catherine Haberland, Wisconsin Department of Financial Institutions
Providing educational resources for your employees is a win-win and part of a successful learning and development (L&D) benefit plan strategy. Professional development is important to help employees better perform functions of their jobs now, while education and learning is more holistic to help your employees grow both professionally and personally long-term, supports their overall wellbeing, and fuels creativity and innovation!
Key to this strategy is helping give employees additional resources and personal choice. 529 plans have been marketed directly to individual savers since they began nearly 30 years ago. 529 education savings accounts offered through the workplace with an employer-matching contribution as an employee benefit is a relatively new development and provides an enhanced alternative to Sec. 127 educational assistance programs. 529 plans can be opened by anyone, including oneself, to help save and invest for education, skill training, and credentials.
Many states are beginning to recognize the importance of 529 plans for workers, their families, and the benefits toward economic development and innovation. State leaders are increasingly interested in economic mobility, college accessibility and attainment, workforce development, improvements in financial literacy, and financial wellbeing of its residents across all socioeconomic dimensions. Here are the eight states that see 529 plans as that gateway and they are incentivizing employers to help!
SOLUTIONS
Avison Strategies understands the value and utility of 529 plans and can help message the expanded opportunities they provide to your employees. Recent federal law changes allow greater flexibility in how these accounts can be used. We can help you make greater sense and opportunity of these changes (P.L. 115-97, P.L. 117-238, and P.L. 119-21).
Avison Strategies will put its extensive experience in this area to work for you. We can help your organization’s employees easily set up a 529 plan that works best for them and help you setup your employer-provided matching benefits through payroll, while ensuring you receive eligible tax incentives to offset that investment in your workers.
Don’t live in one of these states with an employer tax credit yet? Avison Strategies is one of the main firms with experience working at the state level and with stakeholders supporting states, such as the National Governors Association, the National Association of State Treasurers, and the National Conference of State Legislators. We can help you effectively lobby at your state capitol for tax legislation that incentivize employers who contribute to their employee’s 529 plans. We anticipate more states will soon follow.