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FAQ Edvest: Tax Advantages to College Savings

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Make the Edvest College Savings Plan a part of your college savings strategy and give your money the opportunity to grow tax‑free.

Investing in education is a smart move. And, the tax advantages built into the Edvest College Savings Plan can make it an important part of your overall college funding strategy.

 Contributions and Any Earnings Used to Pay for Qualified Higher Education Expenses are Federal and Wisconsin Income Tax-free.
The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and Wisconsin income tax.

Wisconsin Tax Benefits Reduce Your Income Tax Liability
In addition to the potential for federal and state income tax-free earnings growth, if you are a Wisconsin taxpayer, your contributions to Edvest reduce Wisconsin taxable income up to a maximum of $3,000 per beneficiary per year. For more details, including treatment of rollovers, non-qualified withdrawals and recapture provisions, read the Disclosure Booklet and check with your tax advisor.

Federal Estate and Gift Tax Benefits
Contributions to Edvest may reduce the taxable value of your estate. For example, contributions to the Plan, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $14,000 per donor ($28,000 for married contributors), per beneficiary. If an account owner’s contribution to an Edvest account for a beneficiary in a single year exceeds $14,000 ($28,000 for married contributors), the account owner may elect to treat up to $70,000 of the contributions, or $140,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion. Consult your tax advisor.


One response

  1. Pingback: FAQ Edvest: What Are the State and Federal Tax Advantages? | Wisconsin State Treasury

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