What are the tax benefits to saving for childrens education through this program?
These programs are under the IRS Code 529, and earnings on your EdVest account grow federal and potentially state tax-free. Qualified withdrawals from a 529 plan are also federal — and potentially state — 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. Grandparents who contribute to an EdVest account will be able to deduct up to $3,000 per grandchild, per tax year from their Wisconsin taxable income, beginning with their 2002 tax return.
