Employers: Expand your benefits package - at no extra cost!
As an employer, you want to offer a competitive suite of benefits while keeping administrative costs at a minimum. One benefit that can accomplish both is a payroll direct deposit program for a 529 college savings plan, like College SAVE.1 When you offer College SAVE as a benefit, you can give your employees the opportunity to help their children, grandchildren, or even themselves have a better future.
Why College SAVE?
College SAVE offers many great benefits for North Dakota’s college savers, including:
- A state tax deduction for North Dakota residents of up to $5,000 ($10,000 if married, filing jointly) for contributions to a College SAVE 529.2
- Tax deferred earnings, and qualified withdrawals are federal and state tax free.3
- Savings that can be used at eligible 2- or 4-year college or vocational/technical school anywhere in the United States or abroad.
- BND Match which offers up to $300 for up to three years.4
- New Baby Match, a program that seeks to give $200 to every North Dakota newborn
Payroll direct deposit for college savings1
For as little as $12.50 per pay period, your employees can save for their children's and grandchildren's, future education. They can even save for their own re-training and career development. Best of all, you can offer College SAVE through payroll direct deposit at no cost.
No extra administrative burden
We know that corporate HR and Payroll departments have overflowing workloads. That's why we've made the College SAVE payroll direct deposit benefit simple to administer. With online registration, which the employee completes him/herself, there is only one form to cross your desk. We use the same ACH direct deposit system that you are probably already using. NOTE: 529 payroll deductions use after-tax dollars.
Participating employers will get access to 529 Boost, an online tool that can help facilitate custom matching programs, upload and store lists of eligible employees, and manage eligibility throughout the year. Register for access at 529boost.com.
Knowledgeable professionals are available to assist you before and after you put a payroll direct deposit program in place. They can also answer questions from your employees about the importance of saving for higher education.
Depending on your needs, we can help you develop a strategy to effectively communicate this exciting new benefit to your HR/Payroll department and/or to your employees. We can offer all the resources you'll need to get started:
- Discussing the realities of paying for higher education and the benefits of a 529 plan
- Assisting HR/Payroll departments with initiating payroll direct deposit
- Leading workshops for employees on the importance of saving for college and the benefits of College SAVE
- Staffing benefits fairs
- Providing educational materials for employees
1A plan of regular investment cannot assure a profit or protect against a loss in a declining market.
2Rollovers from another state’s 529 plan are not eligible for the state income tax deduction.
3Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax,
as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
4Matching grants are subject to the availability of funds and can be reduced or stopped at the discretion of Bank of North Dakota.
Ascensus Broker Dealer Services is the distributor of the North Dakota College SAVE plan, Learn more about Ascensus Broker Dealer Services, LLC on FINRA's BrokerCheck.
For more information about North Dakota's College SAVE Plan (College SAVE), call 1-866-SAVE-529 (1-866-728-3529) or click here to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Ascensus Broker Dealer Services, LLC (ABD) is Distributor of the College Save.
Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
College SAVE is a 529 plan established by the State of North Dakota. Bank of North Dakota (Bank) acts as trustee of College SAVE Trust, a North Dakota Trust, and is responsible for administering College SAVE Trust and College SAVE. ABD, the Plan Manager, and its affiliates, have overall responsibility for the day-to-day operations of the Plan, including recordkeeping and marketing. The Vanguard Group, Inc. (Vanguard) provides underlying investments for the Plan. The College SAVE's Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns are not guaranteed and you could lose money by investing in College SAVE. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state consequences.
Not FDIC Insured. No Bank, State or Federal Guarantee. May Lose Value.
Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. Upromise is a registered service mark of Upromise, Inc. All other marks are the exclusive property of their respective owners. Used with permission.