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Growing your business with corporate 529 plans
Corporate 529s: Good for businesses and employees alike
Just like families, many corporations love the idea of having easy access to a 529 college savings plan. As a result, the biggest challenge for financial professionals is making sure corporate clients are aware of 529 plans and their potential benefits.
Many corporations have been focused on health care, so offering 529 plans as a benefit may not be top of mind. Lunch-and-learns and other types of education programs for HR staff are a great way to increase 529 visibility and consideration. Broader financial education for employees, as well as education on 529 plans in particular, can help open the door to many other opportunities.
Presentation preparation
Before presenting a 529 plan to corporate clients, financial professionals should do their due diligence on the following topics:
- The differences between 529s and other college savings vehicles
- The overall tax benefits of 529s
- The difference in tax benefits between in-state and out-of-state plans
- Fees and expenses
- Administrative and payroll issues
- How 529s can affect financial aid eligibility, and strategies for blending the two
It's very important to know the details of not only the benefits of a 529 plan, but also how the chosen college savings plan compares with other plans. It's also critical to specifically detail how you as a financial professional will help support the 529 program benefit in terms of increasing enrollment, educating employees, and providing communications.
