Products September 1, 2002

Waddell & Reed Offers 529 Plan Payroll Deductions

January 9, 2002 (PLANSPONSOR.com) - Employers who want to offer their employees a 529 college savings plan deduction option might want to consider a new option from Waddell & Reed.
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The InvestEd Plan, available through an investment in Waddell & Reed InvestEd Portfolios, allows employees to predetermine an amount of at least $25 that will be automatically deducted from their paychecks and invested in a college savings account.
 
The program is available to any size business free of charge, and Waddell & Reed financial advisors will provide employers all enrollment support and materials.

‘Minor’ Differences

Investments in 529 plans grow tax-deferred until withdrawn, and from 2002, when assets are withdrawn for qualified higher education expenses such as tuition, room and board or books, the earnings will be federal income tax free.

Further, unlike Uniform Transfer to Minor accounts, the account owner retains control after the beneficiary reaches legal age, ensuring that the money saved is used for education expenses. 


Waddell & Reed launched the InvestEd Plan last October.

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