Employer-assisted College Savings Program
Extend the reach of your benefits package by helping employees and future generations achieve their dreams of a college degree.
Product Features & Benefits
- Make contributions to employee 529 College Savings Plan
- Employers choose who receives the benefit and how much to contribute
- Incentivizes planning and contributes to financial wellness
- Can be offered in concert with, or independent of, Student Loan Repayment
- BenefitEd takes care of the program administration, making implementation simple
How It Works
Employee Opens Plan
Employees can use an existing 529 college savings plan or open a new one by naming an account owner or beneficiary. All state-sponsored programs qualify for BenefitEd.
Employees make tax-free contributions to their savings account and accrue interest. There are no minimums or due dates for contributions.
Employers provide an additional contribution to the savings account through BenefitEd. There are no minimums or due dates for contributions.
Employee Uses Funds
When the need arises, employees use funds from their savings plan to pay for tuition, books and education-related expenses.
Helping employees plan for education is simple.
We work with you to identify which employees carry student loan debt, and help customize a package based on your unique benefit needs. Customization options include:
- Eligibility: Which employees are eligible for the benefit
- Duration: How long employees will have this benefit available
- Contribution Amount: How much you offer per employee
- Contribution Frequency: How often you make payments
We take care of the necessary outreach to onboard employees. We’ll also email employees to let them know when deposits have been made.
- You provide employee eligibility file
- We’ll enroll eligible employees, collect 529 information
- You verify employee status and provide lump sum payment
- We distribute the payment to employee 529 accounts
Reporting and Results
BenefitEd tracks the impact on retention.
- Monthly enrollment reports help keep tabs on program activity
- Employees receive email confirmation that payment has been administered, reinforcing program value
What is a 529 College Savings Plan?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. Learn about other factors for 529 plans.
How do employees sign up for a 529 Plan?
Employees will need to have a 529 plan before receiving the college savings plan benefit. Find plans for your state.
Who is eligible for this student loan repayment benefit?
Employees must open a 529 plan before this benefit can be applied. Employers can offer their contributions to all or any specific subset of employees.
Do employers match employee contributions?
Most 529 plans do not require any minimum or monthly contributions. Employer contributions will supplement savings.