Gusto, an all-in-one HR platform provider, announced they will begin offering their small business customers a wide array of benefits typically only available to employees of big companies; the first of which is the availability of 529 plans through a partnership with Gradvisor.
Gusto’s 40,000 small business customers will be able to provide personalized, tax-advantaged savings plans to their employees, enabling them to save for their children’s college education.
Saving for college education competes with saving for retirement. A survey last year found more than two-thirds (67%) of parents surveyed said saving for their children’s college education is more important than saving for retirement. The survey also found they may not be using the most appropriate type of account to save. Forty-two percent are using low-interest savings accounts, and 27% are using retirement accounts that penalize savers for withdrawing money before retirement. Only 37% of parents are using a tax-advantaged 529 plan to save for their children’s college education.
“We’ve always wanted to bring this benefit to smaller businesses, but it was difficult for us to scale on our own,” says Marcos Cordero, CEO and co-founder of Gradvisor. “By tapping into Gusto’s well-established ecosystem of 40,000 customers, we can now bring this benefit to a broader audience simply and automatically – helping small businesses and their employees to plan for the future.”529 plans will be available within Gusto for an additional $6 per employee that registers to use Gradvisor. More information is available at https://gusto.com/product/529-college-savings.