Wisconsin 529 Plan Rules And College Savings Options
Wisconsin has a 529 plan called Edvest that can help you save for college. Wisconsin doesn't offer a 529A ABLE plan.
If you live in Wisconsin, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Wisconsin. Each state has different rules when it comes to 529 plan savings. Here are the Wisconsin 529 plan rules.
Average Cost Of College In Wisconsin
When saving for college in Wisconsin, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 87 colleges and universities in the State of Wisconsin.
The total average cost of college (Cost of Attendance) in Wisconsin for in-state residents is $17,330 for 2023. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $6,404 for 2023. The cost of tuition in Wisconsin has been rising at about 4% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Wisconsin 529 Plan Rules And Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in Wisconsin.
Contributions
Wisconsin offers a state tax deduction for contributions to a 529 plan in 2024 of up to $4,000 per beneficiary ($2,000 for married filing separate status and divorced parents of a beneficiary).
Minimum: $25
Maximum: Accepts contributions until all account balances for the same beneficiary reach $567,500.
Rollovers
Rollovers into the state plan are considered for the tax deduction up to the limits specified above.
Outbound rollovers are subject to recapture of prior Wisconsin tax deductions.
Qualified Distributions
Qualified distributions from a Wisconsin and non-Wisconsin 529 plan are tax-free.
K-12 Education
Wisconsin does conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Student Loans
Wisconsin does conform with Federal law for using a 529 plan for student loans.
Rollover To Roth IRA
Wisconsin does allow the rollover to a Roth IRA up to $35,000. Learn more about the 529 plan to Roth IRA rollover here.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from a Wisconsin 529 is subject to recapture of prior Wisconsin tax deductions.
Wisconsin 529 College Savings Plan Options
Wisconsin has several 529 plan options - one consumer plan and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this).
Wisconsin 529 Plan Facts
Wisconsin has the following currently invested in 529 plans in the state as of December 31, 2023:
529 Plan | Number Of Accounts | Total Assets | Average Account Balance |
|---|---|---|---|
Wisconsin Edvest | 227,721 | $5,000,858,752 | $21,960 |
Wisconsin Tomorrow's Scholar 529 Plan | 112,286 | $2,234,265,248 | $19,897 |
Total | 340,007 | $7,235,124,000 | $21,279 |
Edvest
Edvest is the name of Wisconsin's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include TIAA,T. Rowe Price, DFA.
Fees:
There is a program management fee of 0.07%.
The underlying funds all charge expense ratios from 0.05% to 0.28% depending on the investment option.
Who Should Use It:
We recommend that Wisconsin residents use the Edvest 529 plan due to the tax benefits, low fees, and plan investment options.
We recommend that out-of-state residents utilize other plans.
Wisconsin 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
Wisconsin is one of the few states that doesn't offer a state-sponsored 529 Able plan.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
Wisconsin Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Wisconsin Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Clint Proctor Reviewed by: Ashley Barnett