Growing your business with corporate 529 plans
Invesco believes advisors can build a solid business strategy incorporating 529 plans into their everyday business. Scott McDowell interviewed Garry Kohn, an RIA, to learn how Garry integrated corporate 529s into his practice.
Invesco Insurance and
Education Sales Division
Certified Financial Planner®
LM Kohn & Company
Listen to the interview | Full interview
Corporations and 529 plans
As employee benefit costs rise, HR departments are looking for ideas that can help employees with little-to-no cost to the company. More companies are viewing college savings benefits as part of the overall financial well-being of their employees.
Corporate 529s: Good for businesses and employees alike
Corporations and families love the idea of having easy access to a 529 college savings plan, so the biggest challenge for advisors is to make sure clients are aware of the 529 story.
Many corporations have been focused on health care, as of late, so offering 529 plans as a benefit is not top of mind at many companies. The advisor has to be persistent and constantly offer lunch-and-learns and other types of education programs for HR staff. Advisors also need to make sure that employees are educated on 529 plans.
Before presenting a 529 plan to corporate clients, advisors need to do their due diligence on the following topics:
- The differences between 529s and other college savings vehicles
- The overall tax benefits of 529s
- The difference in tax benefits between in-state and out-of-state plans
- Fees and expenses
- Administrative and payroll issues
- How 529s can affect financial aid eligibility, and strategies for blending the two
It's very important to know the details of not only the benefits of a 529 plan, but also how the chosen college savings plan compares with other plans. It's also important to specifically detail how you as an advisor will help support the 529 program benefit in terms of increasing enrollment, educating employees and providing communications.
Learn about CollegeBound 529
The information provided is for illustrative, informational and educational purposes only. We make no guarantee that utilization of any of its content will result in increased business, and should not be considered an endorsement of this or any particular business building practice. The opinions expressed are those of Garry Kohn. Invesco does not take responsibility for his opinions. Invseco Distributors, Inc. is not affiliated with Garry Kohn or LM Kohn & Company.