Funding for the Future: It’s Time to Dash to Save
Lael Oldmixon, Executive Director, Alaska 529, Education Trust of Alaska
It’s been a great year partnering with the Alaska Association of School Boards. I wanted to take a moment to thank you for your dedication to Alaska’s future, and the work you’re doing to spark curiosity and a passion for learning in young Alaskans. Education, in its many forms, is the foundation that all the achievements we want for our kids is built. Some planning is needed to ensure that students are able to cover the costs of education and training after high school. This is where Alaska 529 can be a valuable resource.
I wanted to take this opportunity to spotlight two important resources that can add up when it comes to saving for future education and aimed at reducing the burden of paying for education: the Dash to Save™ and Dash to Save More™ incentive programs. These programs offer unique benefits not found elsewhere in the United States, including:
- A $250 payment to qualifying new Alaska 529 accounts opened with a minimum investment of just $25 during the calendar year.
- An additional $100 contribution to accounts (new and existing) for automatic monthly contribution and/or payroll direct deposit of at least $25.
Alaska 529 is one of the only 529 programs in the country to offer continued matching contributions to incentivize systematic saving. Alaska’s incentive contributions can earn a new account holder/beneficiary relationship up to $350 in its first year, for the combined actions of opening a new account and setting up systematic savings. If the account holder keeps investing through direct deposit or automatic monthly contributions, an additional $100 incentive contribution may be contributed to the account annually, through the Dash to Save More incentive program.
Alaska 529 launched the incentive programs with the following goals in mind:
- Increase the percentage of children in all regions of Alaska saving for education, with a long-term goal of every child in Alaska having dedicated funds for future education.
- Boost postsecondary enrollment and graduation rates for Alaska students by fostering aspirations for education and career training.
- Support Alaska’s economic growth and workforce development by providing financial tools and resources that will help make education more affordable and accessible for all Alaskans.
- Encourage proactive financial behavior to prepare for future education.
- Encourage families to start saving as soon as possible.
Data shows even relatively small, modest investments in a young person’s education savings can increase their chances of pursuing higher education and graduating. We are providing the best, most robust incentives we can to help families save for whatever schooling their young Alaskan might want. That could be college, trade school, vocational training, apprenticeship, or whatever students of all ages want to pursue. We are here to make their career paths affordable and attainable.
Many 529 incentive plans limit participation to infants or low-income families. The Dash to Save incentive program is one of the least restrictive state incentive programs. Applicants are not expected to fill out additional forms or provide birth certificates or proof of income; opening and funding an account are the only actions required.
It is important to remove barriers, real and perceived, to saving for education after high school. Alaska 529 takes the lead in this space because every Alaskan, whether they live in Ketchikan, Anchorage or Utqiagvik, deserves the same opportunity to save education. The Dash to Save incentive program takes an inclusive approach that makes it easier for Alaskans from all backgrounds to take that critical first step and I’m delighted the Education Trust of Alaska is in a position to fund an incentive program of this magnitude.
For more than 20 years, Alaska 529 has made it easy to save for education in Alaska and study anywhere. The tax-advantaged accounts offer unique benefits such as the ability for Alaska residents to invest through the PFD, and the University of Alaska Portfolio, which has a tuition-value guarantee when used for attendance at any location in the University of Alaska system..
Thank you for your devoted service to your communities and the next generation of Alaskans. I look forward to the accomplishments we can achieve together. I hope you take advantage of Alaska 529’s incentive programs personally, as well as help me spread awareness of this to all the families in your school district.
More information, including program terms and conditions, is available at Alaska529plan.com/dashtosave.
Dash to Save and Dash to Save More are trademarks of the Education Trust of Alaska.
The views expressed here are the writer’s and are not necessarily endorsed by the Association of Alaska School Boards. AASB welcomes diverse perspectives and civil discourse. To submit a Guest Column for consideration, see our Guest Column Guidelines and email your 400-1000 word submission HERE.