One Plan, Many Paths
Lael Oldmixon, Executive Director, Alaska 529, Education Trust of Alaska
Alaska 529 is proud to partner with AASB and to have missions that align to create a diverse and prosperous workforce in Alaska. For 23 years, Alaska 529 has successfully broken down financial barriers, promoted college and career readiness, and supported a skilled workforce by offering residents an accessible and successful 529 education savings plan.
What is a 529 plan? It is a tax-advantaged investment account, used to save for future education expenses. Funds deposited into the accounts grow tax-deferred, and withdrawals are free of federal income taxes when used to pay for eligible education expenses.
Here are Alaska 529’s goals:
1. Break Down Financial Barriers: Alaska 529 helps families plan and save early to reduce the financial burden of college, trade school, and other educational pursuits. Saving early and often can reduce the need to incur and pay off debt in the future.
2. Encourage College and Career Confidence: Families that plan and prepare for a child’s future education set clear expectations that higher education is achievable and is an important part of the future. This can also motivate students to work harder in school. Studies have shown that when kids know they have a dedicated education savings account, even if it has as little as $50, their likelihood of pursuing education and training after high school increases dramatically.
3. Support Many Paths: In addition to college and graduate school, Alaska 529 accounts can be used to cover expenses in an array of programs that align with Alaska’s varied career paths and workforce demands. Students may also use accounts to cover vocational studies and expenses associated with trade schools. Eligible expenses include tuition, lodging, meals, and other costs associated with the programs.
4. Offer Flexibility and Accessibility: Families can open an account for as little as $25 and receive incentive contributions sponsored by Alaska 529 totaling $350, just for opening and funding an account with recurring contributions. Families can also invite friends and family to contribute to an account using the UGift gifting tool. Most Alaskans are familiar with the Alaska 529 question on the PFD application as well, offering residents the option to automatically fund an account with the annual windfall. These generous and convenient benefits of Alaska 529 make saving for future education accessible to all residents, regardless of income level.
While thousands of Alaska families are investing in 529 accounts for their children, the majority are not. We’re asking you to help us secure outreach opportunities in your communities. We are available to present at your meetings or your schools. We can provide informational materials to distribute to families. We can send you promotional items to share at your school events. Help us create an Alaska where all children have an investment in their name and a future full of possibilities.
One final thought. As you seek to attract and retain talented teachers and staff in your district, consider offering Alaska 529 Workplace as a benefit. This program allows employees to fund their 529 accounts through payroll direct deposit and reinforces a district’s commitment to employees’ families and personal professional development. Our team is available to answer questions or present on this easy-to-offer employee benefit.
Please visit Alaska529plan.com, call (907) 474-5671, or email Alaska529@alaska.edu for more information. We look forward to working with you!
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.