Betterment at Work Expands Financial Benefits Platform with 529 Savings Solution Powered By Ascensus

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Jun 15, 2023, 09:00 ET

Employer benefits now include 401(k), student loan management, personal retirement and investing, financial coaching, and educational savings

NEW YORK, June 15, 2023 /PRNewswire/ -- Betterment at Work, a leading provider of modern financial benefits for today's diverse workforce, is launching a 529 Education Savings solution. The new offering represents Betterment at Work's evolution into a financial wellness platform with the 401(k) at its core, as it rapidly scales the number of employers it serves nationwide.

The 529 solution is provided through a partnership with Ascensus — whose technology and expertise help millions of people save for retirement, education and healthcare.

"Adding educational savings to our benefits solution further cements our commitment to help businesses support the financial needs of their employees," said Sarah Levy, CEO of Betterment. "Our customizable financial benefits can be personalized to fit each worker's goals – including retirement savings, emergency savings, and student loan management – all in one place."

Together, Betterment and Ascensus provide employees a user-friendly, digital experience for 529 plan enrollment and contributions. Each user has clear visibility into their education savings alongside their other investments in one dashboard. The new product solution allows employers to seamlessly offer 529 plans, support payroll direct deposits, and provide a matching contribution, alongside Betterment's 401(k) and other benefits.

"We're excited by the opportunity to expand 529 awareness and availability to the Betterment community through this integrated solution," noted Peg Creonte, President of Ascensus Government Savings. "Our partnership with Betterment is just one example of our continued commitment to technology-first distribution solutions for our institutional clients and state partners."

Key benefits include:

Tax-advantaged savings: Funds in a 529 grow tax-free, with tax-free withdrawals on qualified distributions.
Personalized and optimized: 529 plans can automatically adjust asset allocation so that the investment selection aligns with the beneficiary's risk tolerance and age.
Flexible contribution limits: While one-time contributions and balance limits vary by state, employees have control over how much they save.
Wide range of uses: Funds can be applied to college tuition and fees, books and supplies, some room and board, and (in many states) even K–12 tuition up to $10,000/year. Starting in 2024, unused 529 funds can be rolled into a beneficiary's retirement savings without taxes or penalties.

"Betterment at Work is adding 529s because we are committed to providing innovative solutions that address the needs of a continuously evolving workforce," said Kristen Carlisle, Vice President and General Manager of Betterment at Work. "Employees are often faced with the difficult choice between saving for college or planning for retirement, but they should not have to sacrifice investing for one goal at the expense of another."

To learn more about Betterment at Work's 529 solution, visit https://www.betterment.com/work/529-plans.

About Betterment at Work:
Betterment at Work provides modern financial benefits for today's diverse workforce, empowering small-to-medium-sized businesses to attract and retain happy employees. Built on the same technology that powers our industry-defining investment platform, Betterment at Work helps employees meet goals beyond retirement, with customizable portfolios, debt management tools, easy-to-understand advice on how to save, and more. Our automation makes it easy to offer a better 401(k) in only a few minutes - at one of the lowest costs in the industry - and Betterment takes on the fiduciary responsibility for employee accounts, supporting personalized choice with expert management.

About Ascensus:
Ascensus is a market-leading enabler of tax-advantaged savings—providing technology, services, and expertise that help more than 15 million people save for retirement, education, and healthcare. Ascensus offers comprehensive qualified and non-qualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, health savings and COBRA administration, corporate- and bank-owned life insurance solutions, and fiduciary and total rewards services. The company's brands include Ascensus; Newport, an Ascensus company; PAi, an Ascensus company; and FuturePlan by Ascensus. Ascensus has more than $722 billion in assets under administration and employs more than 5,600 associates as of March 31, 2023.