At most jobs, there is a pretty standard set of benefits that you receive: health insurance and a 401(k) plan. While different employers might offer dental insurance, tuition reimbursement or a number of other perks, these are the two most common items provided by U.S. employers.
With virtually every benefit, there is a cost to the company. Health insurance plans have monthly premiums that equal several hundred dollars per employee, while 401(k) plans have an annual fee to make sure that all tax laws are being followed properly. So you can see why most companies aren’t looking to increase their benefits packages when unemployment is over 10%.
A 529 savings account is one of the most common ways that people save for college today. In many ways, it is simply a brokerage account that is used to pay for college costs. It has high contribution limits (you can deposit $13,000 per year) and any gains on your investments are tax-free as long as the funds are used for college expenses. The best part about it is that it costs an employer nothing to set up the plan and there is no annual fee to maintain one. Every employee in your company could open an account and there would be no cost to the employer for doing so.
College costs have become a large expense for parents. If your company is interested in adding a 529 plan to its suite of employee benefits or just in hearing more about how the plan works, let us know and we would be happy to answer any questions you have.
Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. (TFA) member FINRA, SIPC and a Registered Investment Advisor.