Benefits & Compensation
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
(Please note that this forum is dedicated to workforce-management professionals only, and not for employees.)
Posted: 2002-04-02 08:02
We want to set up a Section 529 (Coverdell Education Savings Account) for our employees. I was told we could do this ourselves, can someone give me some guidance as to how we go about doing this?
uksarge
Joined: Jan 08, 2002 Posts: 380
Posted: 2002-04-02 17:33
I assume by "set up" you are talking about opening accounts for beneficiaries in already established plans operated by the state or a private investing house like Fidelity, Vanguard, etc.
It depends on whose plan the investors want to buy into. There is no single plan that meets the needs of all investors. For example, if your state has a high income tax and your state's plan offers generous 529 concessions, that's probably the way to go. Another important consideration would be the aggressiveness of the invested funds.
The answer is to contact the plan administrators if you wish to be the custodian for enrollments.
urbanboychik
Joined: Apr 23, 2002 Posts: 2
Posted: 2002-04-25 15:28
Both Education IRAs and 529 Plans are now widespread in the workplace. For a company with employees in multiple states, they need to be careful to address the state tax deduction for ALL employees. One mutual fund company cannot do this, you will multiple plans for most large companies.
http://www.529educationplan.com/
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Posted: 2002-04-02 08:02 
