Representing the firm’s evolution into financial wellness with the 401(k) at its core, Betterment at Work is launching a 529 Education Savings solution in partnership with Ascensus.
Together, the two firms will provide employees with a user-friendly, digital experience for 529 plan enrollment and contributions, according to the announcement. Each user will have clear visibility into their education savings alongside their other investments in one dashboard.
Moreover, the new product solution allows employers to seamlessly offer 529 plans, support payroll direct deposits, and provide a matching contribution, alongside Betterment’s 401(k) and other benefits.
“Adding educational savings to our benefits solution further cements our commitment to help businesses support the financial needs of their employees,” explains Betterment CEO Sarah Levy. “Our customizable financial benefits can be personalized to fit each worker’s goals—including retirement savings, emergency savings, and student loan management—all in one place.”
“We’re excited by the opportunity to expand 529 awareness and availability to the Betterment community through this integrated solution,” notes Peg Creonte, President of Ascensus Government Savings. “Our partnership with Betterment is just one example of our continued commitment to technology-first distribution solutions for our institutional clients and state partners.”
Key benefits include:
- tax-advantaged savings with tax-free withdrawals on qualified distributions;
- the ability to automatically adjust asset allocations to align with the beneficiary’s risk tolerance and age;
- flexible contribution limits; and
- a wide range of uses for qualified educational expenses, including college tuition and fees, books and supplies, some room and board, and (in many states) even K–12 tuition up to $10,000 per year.
Moreover, starting in 2024, unused 529 funds can be rolled into a beneficiary's retirement savings without taxes or penalties.
“Employees are often faced with the difficult choice between saving for college or planning for retirement, but they should not have to sacrifice investing for one goal at the expense of another,” adds Kristen Carlisle, Vice President and General Manager of Betterment at Work.
To learn more about Betterment at Work’s 529 solution, visit https://www.betterment.com/work/529-plans.
