Nearly 80,000 more people have invested in EdVest to save money for their children's college tuition in the last eight months.
Program manager Marty Ollie says the total in EdVest's accounts skyrocketed from $100 million in November to $450 million in June.
And he says the number of accounts has shot up from about 20,000 to over 96,000.
Investors don't have to pay state or federal income taxes on the earnings when the money is withdrawn as long as it's used for tuition, books, fees and room and board.
Wisconsin parents who invest in EdVest can deduct $3,000 per child from their state income taxes.
And a provision in the budget repair bill Governor McCallum signed Friday allows grandparents to deduct the same from their taxes for each grandchild.
Extended Web Coverage
Wisconsin EdVest Program
- EdVest is a state tuition program that helps families across the country save for their children's education.
- With EdVest, an account is opened on behalf of a designated beneficiary. The contributions are placed in a trust and are directed into special investment portfolios designed and managed specifically for the program.
- Earnings in the account will grow federal tax-free until the time the designated beneficiary is ready to go to college.
- The funds then are available to be used to pay for higher education expenses at any eligible school – including technical, vocational, and graduate schools.
- Earnings in the EdVest account grow tax-free.
- Wisconsin residents owe no state income tax on qualified withdrawals.
- Contributions of up to $3,000 per dependent child, per tax year are deductible from Wisconsin taxable income.
- Contributions up to $55,000 may be excluded from federal gift tax pro rata over a five-year period.
- Completed gifts are considered removed from your estate for tax purposes, while as the account owner, you still retain control of the account.
- Use the money at any eligible institution of higher education in the U.S. (and even some abroad) – including graduate school.
- Use the money in your account for a wide range of educational expenses including tuition, fees, books, even room and board expenses.
Source: http://www.estrong.com/strongweb/strong/jsp/edvest/index.jsp?BV_UseBVCookie=yes&sel=/EdVest/EdVest+Home ( EdVest College Savings Program Web site)