Growing Your Money
The minimum investment needed to open an EdVest account is $250. This minimum is waived if you set up an Automatic Investment Plan (AIP) for as little as $15 per month coming directly from your bank account or paycheck.
Contribution Limits
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 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.
Who Can Contribute
Anyone can contribute to a student's account. However, only the account owner has control over how the assets are used. A person wishing to make a sizable contribution may want to consider opening a separate account for the same beneficiary.
Investment Options
EdVest offers several specially designed investment portfolios. You select an option at the time you establish an account. Once money is invested, you may change that option once per calendar year or when you change the designated beneficiary on the account. You can always control where to invest new contributions. Learn more about the investment options available.
Dollar Cost Averaging
EdVest offers a Systematic Exchange feature that allows you to invest a lump-sum into one Portfolio, then automatically transfer a set dollar amount into another Portfolio. Learn more about the benefits of dollar cost averaging.
A program of regular investment cannot assure a profit or protect against a loss in a declining market. Since such a program involves continuous investments regardless of fluctuating share values, investors should consider their financial ability to continue purchase through periods of low price levels.
Transferring Contributions
It's easy to roll money into the plan and you may even get a tax deduction on your rollover contribution.
- Education Savings Accounts
A qualified withdrawal may be taken from an Education Savings Account (tax-free) if the money is then placed into a 529 plan for the same beneficiary. There is no penalty for this liquidation as long as the assets are placed into a 529 plan. You may also still make the annual maximum contribution ($2,000) to an Education Savings Account if you have an EdVest account.
- Savings Bonds
Savings bonds would have to be liquidated, since only cash can be contributed to a 529 plan. 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.
Wisconsin State Tax Deduction for Contributions
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.