Plan Basics
EdVest is an innovative qualified tuition program that helps families across the country invest for one of their most important financial goals – their children's education. EdVest is administered by the Wisconsin Office of the State Treasurer and is managed by Wells Fargo Funds Management, LLC.
With EdVest, you can open an account on behalf of a designated beneficiary. Your contributions are placed in a trust fund established by the State of Wisconsin and are directed into special investment portfolios designed and managed specifically for the program. Earnings in your account will grow federal and state tax-free in Wisconsin, as well as potentially tax-free in other states, until the time your beneficiary is ready to go to college. The funds are then available to be used to pay for qualified higher education expenses at any eligible school – including two and four-year colleges, technical, vocational, and graduate schools.
EdVest was designed with families like yours in mind. The features of the EdVest college savings program make it easy to invest now and use later.
Tax Benefits
- Earnings in your EdVest account grow federal and potentially state tax-free. State income taxes may still apply for non-Wisconsin residents.
- Qualified withdrawals from a 529 plan are federal and potentially state tax-free.
- Wisconsin residents owe no state income tax on qualified withdrawals.
- Contributions of up to $3,000 per beneficiary are deductible from Wisconsin taxable income each year if the beneficiary is your child, grandchild, great-grandchild, niece, nephew, or yourself.
- Contributions up to $65,000 may be excluded from federal gift tax pro rata over a five-year period.1
- Completed gifts are considered removed from your estate for tax purposes, while as the account owner, you still retain control of the account.
- Start building your account with an automatic investment plan or payroll direct deposit of just $15 a month.
- A low initial contribution of only $250 is required to open an account, and it's waived with an automatic investment plan.
- Contribute up to $330,000 for a single beneficiary.
- Convenient methods of contributing – check, electronic funds transfer, Federal Wire, automatic investment, and payroll deduction.
Professional Money Management
- The Wisconsin College Savings Program Board and the Wisconsin State Treasurer oversee the program.
- Wells Fargo Funds Management provides administration for the program.
- Investment options include underlying investments managed by Wells Fargo Funds Management, LLC, Legg Mason Capital Management, Inc., Robert W. Baird & Co. Incorporated, and The Vanguard Group.
Few Restrictions
- Use the money at thousands of eligible schools in the U.S. (and even some abroad) – including graduate school.
- Use the money in your account for a wide range of educational expenses including tuition, fees, books, even room and board expenses.
A program of regular investment cannot assure a profit or protect against a loss in a declining market.