By Nick Thiros, Senior Institutional Relationship Manager, Ascensus
For the past ten years, I’ve had the privilege of educating Idahoans about the benefits of the Idaho 529 plan. Whether I’m meeting with large employers in cities or small businesses in rural communities, one theme always rises to the surface: people want saving for education to feel easier. And employers want to support their teams without adding administrative burden or cost.
Throughout my work partnering with hundreds of companies across the state, I’ve seen firsthand how 529 plans can make a meaningful difference—both for employees and for the organizations that support them. As employers continue seeking smart ways to attract and retain talent, offering a 529 plan has proven to be a simple, impactful addition to any benefits package.
Payroll Direct Deposit: A Simple Benefit Employees Actually Use
One of the most surprising things for many employers is just how easy it is to add their state’s 529 plan as a payroll direct deposit option. There’s no cost to the employer, no complex administrative process, and in many cases, employees can set it up themselves through a self-service HR portal.
For companies without a self-service system, HR or payroll can assist with the initial setup—and from that point forward, the process essentially runs itself. The automation alone is a game changer for employees: one less thing to remember and one more step toward building their education savings.
And “employees” aren’t just job titles. They’re parents, grandparents, aunts, uncles, godparents—and many are saving for their own education as well. Education is lifelong, and at some point, all of us need to learn something new or upskill for the next stage of our careers. That’s part of what makes 529 plans so powerful: they support education at every stage of life.
Employer Contributions: A Growing Opportunity
Employer contributions to 529 plans are still relatively new in the industry, but the momentum is undeniable. Eight states now offer tax incentives to employers who contribute to employees’ 529 accounts. For instance, in Idaho, companies can claim a 20% state tax credit on contributions to employees’ Idaho 529 accounts, up to $500 per employee per year.
These contributions can be structured creatively—much like a 401(k) match—or offered as one-time awards tied to milestones or life events. One employer I work with contributes when an employee welcomes a new baby. It’s a simple, meaningful way to celebrate a major moment while supporting a family’s future education needs.
Employer contributions have become my passion over the years (just ask my coworkers). Companies appreciate having a one-stop shop benefit that helps employees save not only for their loved ones’ education, but also for their own professional development. And with the recent passage of H.R. 1, 529 plans can now support even more education-related expenses, including professional licensing and continuing education requirements.1
Why It Matters
Offering a 529 plan as a workplace benefit adds immediate credibility and removes uncertainty for employees who may be hesitant about investing. Many of us already manage our retirement, health, and other benefits through our employer—it only makes sense to manage our education savings there as well.
Employees deeply value benefits that support their long-term goals, their families, and their future. A workplace 529 plan does exactly that. It’s a benefit that tells employees, “We’re investing in your growth—and in the people who matter to you.”
Where to Begin
If you’re an employer interested in adding a 529 plan to your benefits package, reach out to your state 529 plan; they’ll guide you through the process. And if you’re an employee who wants your organization to consider offering a 529 benefit, start the conversation with your HR team. Many employers simply don’t know how easy and valuable it can be.
I’m excited to see how workplace adoption of 529 plans continues to grow in the years ahead—and I plan to be front and center, helping Idaho employers support the people who move their organizations forward.
About the Author
Nick Thiros serves as a Senior Institutional Relationship Manager at Ascensus, representing the IDeal – Idaho College Savings Program. Since joining Ascensus in 2015, Nick has leveraged his CPA background and strong relationships across Idaho’s business community to help employers implement meaningful education savings benefits. He is recognized as a subject matter expert on 529 plans and a trusted resource for organizations throughout the state.
Footnotes
1Qualified postsecondary credentialing expenses generally include tuition, fees, books, supplies, and equipment required to enroll in or attend a recognized postsecondary credential program, and fees for testing and continuing education if required to obtain or maintain a recognized postsecondary credential. For a program or credential to be considered recognized it must meet certain criteria. Please refer to the 529 Plan’s Program Description for important additional information describing the tax treatment of distributions taken for postsecondary credentialing expenses.