Most Employers Not Offering 529 "Benefits"

October 28, 2002 (PLANSPONSOR.com) - 529 plans are increasingly desired by employees, but not always available in the workplace, according to a new survey.

ADP’s study shows increasing desire to participate in 529 college savings plans.   Results of the study reveal:

  • 40% of working Americans are familiar with 529 plans
  • 43% would participate in these plans if offered through payroll deductions

However, the vast majority ( 95%) said their employers currently are not offering these plans are part of the benefit package.

529 plan participation has tripled since 1998 from 52,000 plans ($144 million in assets) to 1.5 million plans ($9.1billion in assets) in 2001, according to Cerulli associates, which estimates this year seeing 2.1 million plans ($16 billion in assets).

The study was conducted online by Harris Interactive from August 22-26, 2002, interviewing a nationwide sample of 2,878 adults (aged 18+).

«