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Tax Refunds Offer a Fresh Opportunity to Invest in College Education, Says Wisconsin State Treasurer

MADISON, WI – May 3, 2006 – With tax season over and many Wisconsin families expecting to receive tax refunds, the Office of the Wisconsin State Treasurer is encouraging Wisconsin taxpayers to use their refunds as a means to invest toward their children's education through EdVest, Wisconsin's Section 529 college savings plan.

"With the costs of a four-year college or university growing every year, it has become increasingly important for families to start early in setting money aside for their children's education," said Wisconsin State Treasurer Jack Voight. "Tax refunds are an opportunity to start investing in EdVest. Investing now can serve both as the great start to funding a student's future education and a responsible way to make this year's tax refund last beyond 2006."

Start investing as soon as possible, agrees Sarah Henriksen, vice president of education planning with Wells Fargo Funds Management. "If you invest $500 of your tax refund and add just $25 per month to the account, a newborn could have over $11,000 set aside for college expenses by the time he or she turns 18, assuming a hypothetical 6% return," says Henriksen.1

EdVest helps families in Wisconsin and across the country invest for one of their most important financial goals – their children's higher education. The program offers many benefits, including:

  • An annual Wisconsin state tax deduction of up to $3,000 per beneficiary.
  • Earnings are federal and Wisconsin state tax-free when used for education expenses such as tuition, room and board and books.
  • Flexibility to use at schools almost anywhere in the United States including vocational schools, two- and four-year colleges, and graduate schools, as well as many schools abroad.

To learn more about EdVest, please visit, where you can find more details about the program, request an enrollment kit, or even enroll online. If you would like to speak with a College Planning Specialist, call 1-888-EdVest-WI (1-888-338-3789).

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, offers investment solutions for individual and institutional investors. Through its Wells Fargo Advantage Funds®, the firm offers 120 mutual funds across a wide range of asset classes representing more than $111 billion in assets under management, as of 3-31-06. To help investors plan for the future, Wells Fargo Funds Management offers 529 Plans, IRAs, and, through its Wells Fargo AdvisorSM program, portfolio management services.

EdVest portfolios may invest in stock and bond investments. Stock investments should only be considered for long-term goals as values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond investment values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond investment values fall and investors may lose principal value. Consult a program description for additional information on these and other risks.

Many federal tax attributes for the Plan will expire on December 31, 2010. Unless extended or modified by future legislation, the earnings portion of a qualified distribution made after this date will be taxable at the beneficiary's tax rate.

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