Opening an Account
Anyone of legal age can open an account. Each account may have only one beneficiary, but you can open accounts for as many beneficiaries as you'd like. There are no residency or income restrictions, and you can open an account for anyone, including yourself. You control the account. The beneficiary does not have any control over the account. Both account owners and beneficiaries need to have valid Social Security numbers.
Learn about our flexible contribution options.
Keeping Informed
There are three easy ways to access your account information 24 hours a day.
- Our Web site – www.EdVest.com
- Automated account information phone line 1-800-368-7550
- A live representative at 1-888-EdVest-WI (1-888-338-3789)
In addition, every quarter you will receive a statement that shows the activity on your account – including any contributions, withdrawals, and earnings.
Transferring Assets
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 (PDF).
Wisconsin State Tax Benefits
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 must be postmarked by December 31 to be eligible for that year's deduction. Here are several important things to note:
- To claim a deduction, indicate your eligible contribution amount on Form 1, line 11 under "Other Subtractions," Code 14. The deduction cannot be more than your total income for the year.
- If you are married, filing jointly, the total deduction per child cannot exceed $3,000. For example, if a couple has three children, they may be able to deduct a maximum of $9,000. For married couples filing separately, the maximum deduction each contributor can claim per beneficiary is $1,500.
- For divorced parents, the total deduction that may be claimed for each child is $3,000. The maximum for each former spouse is $1,500 unless the divorce judgment specifies a different division.
- Grandparents can claim deductions on contributions made on behalf of their grandchildren, provided the grandchild is related to the grandparent either biologically or through adoption. Married grandparents, filing jointly, may claim a total deduction on contributions up to $3,000 per grandchild. For example, if a couple has five grandchildren, they may be able to deduct a maximum of $15,000.
- Aunts, uncles, and great-grandparents can also claim deductions on their Wisconsin state income tax return on contributions made on behalf of nieces, nephews, and great-grandchildren.
- Although the individual(s) claiming the tax deduction must be a Wisconsin taxpayer, the beneficiary on the account does not need to live in Wisconsin.
Relocating Out of Wisconsin
If you move out of the state of Wisconsin, you still own your EdVest account, may continue to make contributions, and may use the money when your beneficiary is ready. However, some of the Wisconsin state tax benefits may no longer be available if you are no longer filing Wisconsin state income taxes. If you pay state income taxes in a state other than Wisconsin, please contact your state plan and/or your tax advisor for more information.
Financial Aid
Your eligibility for financial aid will depend on your family's financial circumstances when your child enrolls in college.
- Federal Aid
An account established by the account owner for a beneficiary is considered an asset of the account owner for financial aid purposes. For determining Federal financial aid eligibility, approximately 6% of a parent's assets and 20%1 of a student's assets are considered. Even so, families that have invested for college are generally in a better position than those who have not. For example, a student from a family that has invested for college may not have to borrow as much in student loans, which can be the biggest part of most financial aid packages.
529 accounts owned by a dependent student, which includes UGMA/UTMA 529 accounts, will be considered an asset of the parent for financial aid calculations starting with the 2009-2010 school year. This is the same treatment as parent-owned 529s. Currently, these accounts are excluded from financial aid consideration. 529 accounts owned by an independent student are considered an asset of the student for financial aid calculations. If the account owner is not a student, parent, or legal guardian, then the account assets should have no implications to financial aid.
- Wisconsin State Aid
EdVest investments are exempt from the calculation of Wisconsin state financial aid awards administered by the Higher Educational Aids Board (HEAB). If you're applying for Wisconsin State financial aid, contact HEAB to have your EdVest assets removed from the calculation of your "expected family contribution." Contact HEAB by writing to: P.O. Box 7885, Madison, WI 53707-7885 (give them the question number from the FAFSA form, and the amount of EdVest assets included), or e-mail them at HEABmail@heab.state.wi.us.
Getting Started
You can enroll online today or request a free enrollment kit. If you would like to speak with an EdVest Specialist, call 1-888-EdVest-WI (1-888-338-3789).