As college costs continue to rise, several states are introducing incentives for employers to contribute to employees’ 529 college savings accounts. At least eight states now offer tax credits or deductions for companies that contribute to these accounts, with some states enhancing these incentives. For example, Wisconsin increased its maximum tax credit for employer contributions from $240 to $800 per employee, while Pennsylvania approved a new 25% tax credit for contributions up to $500, effective in 2025.
Employer Takeaway: Consider whether adding a 529 plan contribution benefit is a viable way to attract and retain talent, particularly if you are in a state that offers tax incentives for doing so. Contact us at 414-446-8800 or info@goldsteinsc.com if you have questions about state tax benefits, contribution limits, or any associated requirements to implement and maximize this employee benefit.