10/09/2024

How States are Enticing Employers to Help Their Workers Save for College

At least eight states now offer employers tax credits or deductions

As higher education becomes ever more expensive, some states are giving employers incentives to contribute to 529 college savings accounts for their workers.

Fifteen percent of employers with 500 or more employees now help workers fund 529 plans, either by letting them deposit their own money through paycheck deductions or by providing employer contributions or matching funds as well, according to the Employee Benefit Research Institute. Still, college savings accounts have a way to go before they become as common as other workplace benefits. By comparison, about a quarter of such employers offer help with managing student loans.

But at least eight states now offer tax credits or deductions for employers that contribute to workers’ 529 accounts, and some have recently fattened their incentives to make them more enticing.

Please select this link to read the complete article from The New York Times.