A 529 college savings plan is a great way to supplement your employee benefit package. Most parents list saving for college as a top priority; however, many find themselves unable to keep up with the rapidly rising costs of higher education. Employers who offer a 529 college savings plan as a voluntary benefit attached to the company benefit plan have found a receptive and grateful audience.

An employer-sponsored 529 college savings plan offers additional benefits that resonate with anxiety-ridden parents. The fact that employer-sponsored plans present the opportunity for funding by payroll deduction and the possibility of matching contributions from the employer not only satisfies an existing need but encourages others to plan for the future. Other advantages of an employer 529 college savings plan include:

1. A 529 college savings plan is a low-cost way to provide value to your employees

2. Comprehensive benefit plans help attract and retain key employees

3. A 529 college savings plan consultant can help your employees make strategic decisions about their planning goals

4. Tax advantages realized by employees promote goodwill

Action Steps
The best contacts and resources to help you get it done

Contact your payroll provider for 529 college savings plan advice

Most payroll outsourcing companies also provide for benefits administration, so they can easily integrate a 529 college savings plan with your current benefits package. Checking with your HR or payroll vendor first can save time when shopping for a plan. The new benefit feature can be quickly and conveniently added to your existing list of services.

I recommend: ADP allows your employees to make contributions to their 529 college savings plan via payroll deduction. They offer two different education plans that can be integrated with your company benefits package. AmCheck gives your employees access to nationwide 529 plans. You can request a quote online and receive information back within one hour.

Find a specialist to help with 529 college savings plan

Seeking the advice of a 529 college savings plan consultant is a wise course of action if you are unfamiliar with the program. The consultant can give you specific guidance on choosing a plan and provide 529 college savings plan training for your employees.

I recommend: One such comprehensive source of 529 college savings plan information is 401kid. They will provide your staff with access to all 529 plans, planning calculators, educational material and a benefits specialist. Dugan & Lopatka handles all the paperwork and administration for their 529 plan. Their representative will conduct an on-site visit to train your employees and offer 529 college savings plan advice on their selections.

Compare state 529 college savings plan information

Each state has their own 529 college savings plan, and each state offers unique features. While the 529 plan in your home state likely offers certain tax advantages, many states allow non-residents to participate in their programs and offer features to offset the tax benefit you lose. By comparing the 529 college savings plan information by state you will find the best fit for your firm.

I recommend: Ohio's plan, CollegeAdvantage, offers Ohio state tax deductions, nationwide eligibility and low fees. Employees have complete control of their accounts through a convenient online portal. MOST, Missouri's 529 plan, is open to all U.S. citizens, has a low initial investment, low fees and easy enrollment. Their affiliation with Upromise Rewards allows your employees to earn free money to add to their accounts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some 529 college savings plans offer matching state grants and scholarship opportunities. Be sure to thoroughly research your plan before making a final selection to get all the features you want.