Helping employees save for education is very good for business. Here’s why:
Talented employees are likely your greatest asset. And for many of them, their No. 1 financial worry is saving for their kids’ education.1 Offering the HI529 Plan as a voluntary benefit helps you check both boxes – and do it with no added costs, contracts, or hassels for your HR team.
How employees benefit
- They contribute automaticallty to their kids’ education every pay period with after-tax dollars.
- 529 savings helps cover tuition, meals, housing, fees, and more at eligible college, universities, graduate schools, trade schools, and more worldwide, not just in Hawaii.2
- 529 accounts can grow free of state and fedral taxes, and withdrawals for qualified expenses are tax-free, too.3
How employers benefit
- As an employer, you’re offering one of the most popular employee benefits with little to no effort.
- Employees register for the benefit online, using the same ACH direct deposit system you use now.
- You differentiate your benefits package from competitors.
- You help retain key employees, reducing the high cost of recruiting and onboarding replacements.
For more details, check out our HI529 employer brochure now.
Cost to replace lost employees
$1,500
For hourly employees
up to
2
X
annual Salary
For salaried employees
75%
of former employees say better benefits would have kept them from leaving.
Source: Work Institute 2019 retention report
Want to learn more? Please fill out the form below and we’ll be in touch.
- 1 Gift of College, 2020 “Paying for College” Survey
- 2 An eligible institution includes those that can participate in federal financial aid programs.
- 3 Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. K-12 withdrawals are non-qualified for HI residents.