Frequently Asked Questions
What is a 529 Plan?
Named after the tax code that created them, 529 college savings plans provide a way to invest for higher education expenses. These state-sponsored plans are typically managed by a professional financial services firm, such as Wells Fargo Funds Management, LLC. Learn more about the benefits of 529 plans and EdVest.
How much can I contribute?
There is no annual maximum contribution for EdVest, although there may be gift tax considerations for contributions over $13,000 ($65,000 if pro-rated over five years). Once the combined balance of all of the accounts set up for a single beneficiary reaches the program maximum ($330,000), no additional contributions will be accepted, although the account balance may continue to grow.
Can I open an account if I don't live in Wisconsin?
Yes – anyone of legal age can open an account, no matter where they live. However, there are certain tax benefits for Wisconsin state residents. Your state may offer a 529 plan with alternative advantages including potential state tax benefits. Please consult your tax advisor.
Can I transfer assets from another state's college savings plan into an EdVest account?
Yes. You can roll over balances from another state's program provided that the other state's plan allows it. You will need to complete a new EdVest account application along with a Rollover Request form.
Can I transfer savings bonds to a 529 plan?
Yes. However, since only cash can be contributed to a 529 plan, the bonds would have to be liquidated. Series EE or I-Bonds purchased after 1989 may be converted tax-free to a 529 plan if the eligibility requirements are met to do so.
Can grandparents make contributions to an EdVest account and receive tax benefits?
Grandparents can also claim deductions on their Wisconsin state income tax return on contributions made on behalf of their grandchildren. Grandchildren do not need to be dependents of the grandparents or live in Wisconsin for the grandparent to receive the Wisconsin tax deduction. However, the grandchild needs to be related to the grandparent either biologically or through adoption. This benefit has also been extended to great-grandparents, aunts, and uncles.
Does the money in an EdVest account have to be used for a college in Wisconsin?
No, the money in an EdVest account can be used at any eligible education institution in the U.S. (and even some outside of the U.S.). Search for all eligible schools.
How often can I change investment options?
Investment changes for an existing account are permitted once per calendar year without a change in the Designated Beneficiary.
What if my child decides not to go to college or drops out at some point?
- If the beneficiary does not use the money,
- The account can be re-designated to another beneficiary who is a member of the family.
- You can close the account and receive the balance at any time. There is a 10% additional federal tax for withdrawing funds this way, and federal and state income taxes must be paid on the earnings portion of the withdrawal. The penalty is waived if the distribution is due to the death or disability of the beneficiary or if a scholarship or nontaxable grant is awarded to the beneficiary.
- The funds can remain in the account until the beneficiary returns to school.
If I contribute $3,000 for each of my three children, how much can I deduct on my Wisconsin state taxable income?
You may deduct $3,000 for each beneficiary. In this case, you would be able to deduct $9,000.
When is the deadline to make a contribution?
In order to claim the deduction on your Wisconsin tax return, you must make your contribution by December 31.
Where do I report my contribution on my Wisconsin tax return?
The deduction is taken on Form 1, line 11 under "Other Subtractions", Code 14. Learn more about reporting your contributions.
What are the ticker symbols for the EdVest investment options?
The EdVest investment options do not currently have ticker symbols. View daily prices.