NEWTON, Mass.--(BUSINESS WIRE)--Ascensus, Inc., a leading service provider of retirement and college savings plans, extends its congratulations to the state of Nevada on the passage of Senate Bill (SB) 412, a new tax credit for employers who make a matching contribution to employees participating in a qualified Nevada 529 college savings plan.
Sponsored by Sens. Becky Harris and Mark Lipparelli, the new law aims to encourage the use of 529 plans for college savings and provides employers a tax incentive for incorporating college savings as an employee benefit. SB 412 will allow a 25 percent tax credit on matched contributions up to $500 per employee. The credit was approved by Governor Brian Sandoval on June 8, 2015, and Nevada state Treasurer Dan Schwartz will be responsible for implementing the new law.
“This legislation is going to help Nevada’s residents access education in a whole new way,” says Sen. Harris. “SB 412 presents a great opportunity for Nevada employers to contribute in a way they have not been able to in the past and will help to provide additional opportunities for their employees to extend their own education or pay for their children. It is a game changer.”
Treasurer Schwartz also comments, “This is another tool in the toolbox for longer-term financial planning. We have seen how the 401(k) industry has dramatically improved the nation’s retirement landscape. We anticipate the tax credit will allow employers to greatly enhance higher education saving goals.”
Jeff Howkins, President of Newton, MA-based Ascensus College Savings, the program administrator for three of Nevada’s 529 plans, commends Nevada for its contributions to the college savings landscape.
“Saving for higher education expenses is a significant endeavor. Nevada is truly a visionary for how employers can prioritize college savings as an employee benefit,” Howkins says. “We congratulate Sens. Harris and Lipparelli and Treasurer Schwartz on this tremendous achievement.”
The tax credit will become effective on January 1, 2016.
Ascensus is the largest independent retirement and college savings services provider in the United States, helping over 6 million Americans save for the future. With more than 30 years of experience, the firm partners with financial institutions to offer tailored solutions that meet the needs of financial professionals, employers, and individuals. Ascensus specializes in recordkeeping, administrative, and program management services, supporting over 40,000 retirement plans and over 3 million 529 college savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. For more information about Ascensus, visit www.ascensus.com.
For more information about any of the 529 college savings plans we administer please visit our website at www.ascensuscollegesavings.com. Please visit the State plan website to obtain the plan’s offering statement. Investment objectives, risks, charges, expenses, and other important information are included in a 529 plan's offering statement; read and consider it carefully before investing.
Please consider before investing in any 529 Plan whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
Each 529 Plan is administered and offered by the applicable State. Ascensus College Savings Recordkeeping Services, LLC, Ascensus Broker Dealer Services, Inc. and Ascensus Investment Advisors, LLC, (collectively “Ascensus College Savings”) provides some or all of the following services to each Plan: program management, day-to-day operations, including investment advisory, recordkeeping and administrative services, and marketing.
When you invest in a 529 plan you are purchasing municipal securities whose value will vary with market conditions. Investment returns will vary depending upon the performance of the portfolios in the Plan you choose. Depending on market conditions, you could lose all or a portion of your money by investing in a Plan. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.