More benefits at no additional cost – supporting employees with the college savings process
As employers, your primary goal is to offer an extensive suite of benefits to employees while conserving spending where possible. With a payroll direct deposit program for the Arkansas 529 College Investing Plan, employees have the opportunity to invest in their children’s 529 college savings plans with as little as $15 deducted per paycheck per account.
With this valuable feature, Arkansas employers can receive a business tax deduction of up to $500 per each employee match into an Arkansas 529 plan.
Employees can feel good about providing their loved ones with the opportunity to attend college, and you can feel good about giving back.
Why the Arkansas 529 GIFT Plan?
The Plan offers a variety of benefits for college savers in Arkansas, including:
- A state tax deduction of up to $5,000 (and up to $10,000 for married couples filing jointly) for contributions to an Arkansas 529.
- Tax deferred earnings, and tax-free qualified withdrawals.
- A low minimum investment - open your account with as little as $25.
No added burden for employers
We know that corporate human resources and payroll departments have overflowing workloads. That’s why we’ve made the Arkansas 529 payroll direct deposit benefit simple to administer. With online registration, which the employee completes him/herself, there is only one form to cross your desk. We use the same ACH direct deposit system that you are probably already using. NOTE: Arkansas 529 payroll deductions use after-tax dollars.
Participating employers will get access to 529 Boost, an online tool that can help facilitate custom matching programs, upload and store lists of eligible employees, and manage eligibility throughout the year. Register for access at 529boost.com
Knowledgeable professionals are available to assist you before and after you put a payroll direct deposit program in place. They can also answer questions from your employees about the importance of saving for higher education.
Depending on your needs, we can help you develop a strategy to effectively communicate this exciting new benefit to your human resources and payroll departments, and/or to your employees. We can offer all the resources you’ll need to get started:
- Discussing the realities of paying for higher education and the benefits of a 529 plan
- Assisting human resources and payroll departments with initiating payroll direct deposit
- Leading workshops for employees on the importance of saving for college and the benefits of the Arkansas 529 plan
- Staffing benefits fairs
- Providing educational materials for employees
If you are interested in learning more about setting up payroll direct deposit program, please enter your information below.
Contact our office at 501-682-1406 for information on how to start offering this benefit to your employees.