While hiring new employees can pose a challenge in today’s job market, retaining high-quality employees long-term can prove equally difficult for employers.
Many employers are looking for cost-effective ways to make their business a more competitive option for job seekers, while showing their appreciation and dedication to their existing employees.
Today’s workforce is facing countless issues and many families are struggling financially to pay for the escalating costs of higher education for their children. New Mexico employers have the option to add a meaningful employee benefit at no extra cost by offering the state’s 529 college savings plan – The Education Plan®.
Providing employees with an opportunity to easily save for future education expenses for themselves or their children is a thoughtful benefit that has the power to boost employee morale and retention. For employers, employees with robust benefits are often more engaged and work harder.
The Education Plan® can be implemented at no cost to employers and requires no government reporting, making it a quick and easy way to show gratitude to those who keep your business thriving. Contributions can be made directly from payroll, and employees can start saving with as little as a $1. Offering a 529 savings account as part of a competitive employee benefits package is a great way to attract and retain good employees.
For employees, the plan not only helps cover the cost of higher education for themselves or a loved one, but it also offers tax advantages. Contributions are tax deductible from New Mexico income tax, and the funds grow tax-free. Withdrawals are tax-free if used to cover education expenses including tuition, housing, meal plans, books, supplies, computers and fees. Funds can be utilized at any vocational or trade school, professional school, college or university.
Whether an individual is looking to better their own future through higher education or to save for their children’s education, a 529 plan is an invaluable asset to be offered as part of a benefits package. For employers looking to further increase their benefit offerings, matching contributions are an optional add-on.
Student loan debt is a harsh reality for many New Mexico families. By adding The Education Plan® for your employees, you can help to eliminate the stress of saving for education expenses and help to ease the burden of future loans.
The Education Plan® can give businesses a competitive edge for both recruitment and retention, making it a win-win for everyone involved.
The executive’s desk is a guest column providing advice, commentary or information about resources available to the business community in New Mexico. To submit a column for consideration, email email@example.com.