H elp ee - Bright Start College Savings
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H elp ee - Bright Start College Savings
H ur employ o y p ees el save for their children’s future. Offering your employees an expanded suite of benefits doesn’t have to be difficult. The Bright StartSM College Savings Payroll Deduction Plan is an easy and cost-effective way to upgrade your company’s benefits package and help your employees save for future college expenses. Advantages For Employers For Employees No plan costs or associated fees Invest easily at Net Asset Value (NAV) pricing Easy sign up Contributions are deducted automatically from their paycheck Competitive employee benefits help attract and retain talent Employers in Illinois can earn a tax credit equal to 25% of matching contributions and a maximum annual tax credit of $500 per employee per year. Plus, any unused tax credits can be carried forward for five years. Consult your tax advisor for details on qualifying companies1 Contribution amounts can be changed or terminated at any time Employees of companies in Illinois can increase their total contribution through employer matching Potential for tax-deferred growth of investments and tax-free withdrawals when assets are used to pay for qualified higher education expenses2 State tax deduction for Illinois residents (subject to recapture under certain circumstances) as well as potential federal estate and gift tax benefits3 Features Funding Eligibility Flexibility Employees can elect to automatically contribute a flat dollar amount of their after-tax paycheck to their Bright Start College Savings Program account however, participants may not contribute more than the maximum contribution limit established by the program. Any employee can participate in the Bright Start College Savings Payroll Deduction Plan regardless of company size, participant age, or position in the company. The employer match is only available to certain employers of companies in Illinois4. Participants can change or terminate contribution amounts at any time by simply notifying their payroll officer. Illinois employers can also opt in or out of employer match at any time. Setup is Simple 1. Employer fills out an Employer Deduction Form. 2. Employee fills out an Account Application (can be found at brightstartadvisor.com) and selects payroll deduction option, or designates an existing Bright Start account to enroll in payroll deduction5. 3. Employee completes the Employee Payroll Deduction Form and submits an additional copy to his/her HR or benefits department, including the account number and allocation instructions. 4. Employer submits money via check, wire, or ACH (options detailed on the form) for each pay period. Let’s Get Started If you’re an Illinois employer, consider offering a Bright Start College Saving match program and start earning your tax credit Contact your tax professional or financial advisor for assistance determining if this makes sense for your company Find the Bright Start Employer Authorization Form - Payroll Deduction (IL0000.315) and Employee Payroll Deduction (IL0000.315) forms in the Forms and Literature Section of brightstartadvisor.com Mail or fax the completed form and any required documents to the address listed on the form 1 Based on informal guidance from the Illinois Department of Revenue that is not binding on the Department. 2 When withdrawals are used for non-qualified expenses, the earnings portion of the withdrawal will be subject to ordinary federal, any applicable state income tax and an additional 10% federal tax penalty. 3 Consult your tax advisor for details about your state 4 Consult your tax advisor for qualifying companies. 5 Employees can also set up an account for payroll deduction by downloading an account application and forms from brightstartadvisor.com or by calling 1.877.43.BRIGHT (1.877.432.7444) to request materials. Tax related statements are based on informal guidance from the Illinois Department of Revenue that is not binding on the Department. This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation. The Bright Start® College Savings Program is administered by the State Treasurer of the State of Illinois and distributed by OppenheimerFunds Distributor, Inc. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager of the Plan. Some states offer favorable tax treatment to their residents only if they invest in the state’s own plan. Investors should consider before investing whether their or their designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program and should consult their tax advisor. These securities are neither FDIC insured nor guaranteed and may lose value. Before investing in the Plan, investors should carefully consider the investment objectives, risks, charges and expenses associated with municipal fund securities. The Program Disclosure Statement and Participation Agreement contain this and other information about the Plan, and may be obtained by visiting brightstartsavings.com or calling 1.877.43.BRIGHT (1.877.432.7444). Investors should read these documents carefully before investing. The Bright Start® College Savings Program is distributed by OppenheimerFunds Distributor, Inc. Member FINRA, SIPC Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008 © 2013 OppenheimerFunds Distributor, Inc. All rights reserved. IL1111.246.1115 November 15, 2015