H elp ee - Bright Start College Savings

Transcription

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