By: Carolyn Fittipaldi
Looking for an easy way to strengthen your current and future association membership? Associations could consider informing their members about the benefits of saving towards education goals through The Education Plan, New Mexico’s best-kept secret.
The Education Plan is New Mexico’s 529 education savings plan, administered by The Education Trust Board of New Mexico. It is intended to help more New Mexicans achieve their higher education goals and to reduce the burden of student debt.
Since its creation 23 years ago, the plan has grown to more than 24,000 accounts with close to $600 million in total assets.
Studies show that with just $500 saved, a child is three times more likely to attend college or vocational school and four times more likely to graduate. With no minimum contribution required, an account can be opened at any time and savings can easily grow with the help of contributions from family and friends. Plus, contributions are fully deductible on New Mexico state income tax returns. Investment growth and distributions are tax-free as long as the account is used for qualified education expenses.
Anyone who is receiving a tax refund or stimulus check this year, and is fortunate enough not to need the money for living expenses, should think about opening a 529 account for a loved one or making a contribution to an existing account.
The Education Plan is both flexible and versatile, individuals can open an account for anyone – a child, other loved ones or even themselves. Plan funds can pay for qualified expenses including tuition, housing, books, computers, fees and more, and can be used at any accredited college, university, trade or vocational school anywhere in the country or online, and even many internationally.
If a plan beneficiary doesn’t use the money in the account, the account owner can change the beneficiary to another member of the family. In addition, 529 plan savings have a minimal effect on financial aid eligibility if owned by a parent or the student.
Associations can easily promote a strong workforce by educating their members on how to enhance their benefits package by including The Education Plan. Dedicated outreach staff members are available to conduct educational workshops, supply information and provide hands-on enrollment assistance. If more associations and employers followed suit, it could have an unprecedented impact on workforce and economic development in New Mexico.
To learn more about offering The Education Plan as an employee benefit, visit www.theeducationplan.com/employers or call (505) 412-5121. Please mention that you are a member of the New Mexico Society of Association Executives.