Sun Group Wealth Partners, an independent wealth management firm based in Irvine, Calif., has launched a campaign to promote the inclusion of education savings plans in company benefits packages, Sun Group announced Monday.
The Campaign for Next Generation Employees promotes the inclusion of tax-advantaged 529 plans in company benefits packages. Providing the ability to join the plans is free for companies with 200 or more employees.
The campaign is an open coalition of individuals and families dedicated to getting the Fortune 500 companies to adopt corporate sponsored 529 plans as part of their employee benefits packages, Sun Group says.
The 529 plan allows investors to save money tax free until it is needed for education costs. Employers can provide matching funds for the employees’ savings, similar to 401(k) plans. The campaign will start with letters to the Fortune 500 companies and then expand to other qualified employers, according to the campaign.
The campaign was founded by Winnie Sun, managing director of Sun Group Wealth Partners.
“Student debt has swelled to the $1 trillion dollar mark, eclipsing both credit card and auto loan debt. Conversely, state funding for higher education has reached its lowest point in 25 years in 2011,” Sun says. “This ‘perfect storm’ means many hard-working families face financial ruin or bankruptcy if they choose to educate themselves and their children.”
“Today’s higher education crisis, which is driven almost entirely by the tuition cost conundrum, has a very clear and simple solution: Encourage our nation’s largest employers to set up corporate sponsored 529 plans for their employees,” she continues.
Additional information on the campaign can be found at www.corporate529.com.