In a recent article from The New York Times, Ascensus’ 529 Ugift donation program was featured. As 529 day is quickly approaching, the article seeks to answer savers’ basic questions, such as “Can I donate money to the 529 account of a relative or friend?” Ugift, which is offered in 20 states plus the District of Columbia, allows parents to share a unique code with friends and family that can be used for an electronic donation to a beneficiary’s 529 account.
Ugift
Data Suggests That Contributions Spike During Holiday Months as Family and Friends Look to Give the Gift of Education Savings
Dresher, PA — Ascensus—whose technology and expertise helps millions of people save for retirement, education, and healthcare—is pleased to announce that over $750 million has been gifted to 529 education savings accounts through Ascensus’ Ugift®.
Ugift serves as an easy, free-to-use service that lets 529 plan account owners encourage family and friends to give the gift of education savings in lieu of traditional gifts. Ugift is available to account owners invested in a 529 education savings plan administered by Ascensus.
Account owners receive a unique Ugift code for each beneficiary, which can then be shared with others and used to contribute to the account directly and securely. Contributions can be given at any time, either electronically or by mail. Ascensus also offers the Ugift program to individuals living with disabilities as a benefit of their ABLE savings accounts.
“Our vision for Ugift was to provide a simple, easy tool for friends and family to gift into 529 accounts at any time,” says Kevin Cox, head of Ascensus’ government savings division. “To see that vision fulfilled is truly gratifying.”
Recent enhancements to the Ugift program have made it even simpler to give the gift of savings. Ugift now allows gift givers to set up a profile through which they can view their gift history and schedule recurring gifts. Within their profiles, gift givers can also add and save for multiple beneficiaries. Since the introduction of these features, Ascensus has seen 75% of recurring gift givers contributing on a monthly basis.
Ascensus’ data also shows that Ugift experiences a major spike in utilization over the holiday season. In fact, over 26% of all contributions in 2017 were made in the months of November and December.
“Saving for your child or beneficiary is much easier with help from family and friends; as the Ugift program continues to grow in popularity, parents are finding it even easier to have conversations with their loved ones about this alternate gifting method,” adds Cox. “With the holiday season upon us, we expect to see Ugift contributions ramp up as more people recognize the importance of giving the gift of education.”
For more information on Ugift, check out this video or visit Ugift529.com or UgiftABLE.com.
About Ascensus
Ascensus is the largest independent recordkeeping services provider, third-party administrator, and government savings facilitator in the United States. The firm delivers technology and expertise to help millions of people save for what matters most—retirement, education, and healthcare. For more information about Ascensus, visit ascensus.com. View career opportunities at careers.ascensus.com.
Before investing in any 529 plan, please consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s 529 plan.
When you invest in a 529 plan, you are purchasing municipal securities whose value may vary based on market conditions. Investment returns are not guaranteed, and you could lose money by investing in a 529 plan. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.
The availability of tax advantages or other benefits may be contingent on meeting other requirements. Please consult your financial, tax, or other advisors to learn more about how state-based benefits and limitations would apply to your specific circumstance. You may also contact your home state’s 529 plan(s), or any other 529 plan, to learn more about those plans’ features, benefits and limitations.
Ugift® is a registered service mark of Ascensus Broker Dealer Services, LLC.
In a recent RewardExpert article, Kevin Cox shares his top savings tips, and highlights how Ugift enables friends and family to contribute to a loved one’s 529 college savings plan. “Saving for that tuition bill over time is a big expense in the college savings financial equation. Your own savings are only a component of it. The ability to invite others to help with that process is an added benefit,” notes Cox.
Total Savings Assets Could Finance Four-Year Education for Over 1.24 Million Students.
Ascensus, a technology-enabled service provider that helps more than 7 million Americans save for the future, is pleased to announce that 529 account owners have saved over $100 billion on the firm’s recordkeeping platform. In total, these savings could finance a four-year college education for over 1.24 million students.1
Ascensus’ leading-edge technology platform and interactive planning tools make it simple for over 4 million 529 account owners to track progress to their savings goals. The firm’s Ugift® platform has also become an important component of Americans’ education savings strategy, enabling family and friends to contribute money directly to a beneficiary’s 529 account. In late 2017, Ascensus made it even easier for non-account owners to become meaningful contributors to loved ones’ accounts, allowing them to establish gifter profiles and schedule recurring gifting contributions.
With 15 years of 529 industry experience, Ascensus has become a key advocate for 529 plan education and awareness. The firm’s HowToSaveForCollege.com empowers consumers to save for education expenses, providing easy-to-understand explanations of college costs and reinforcing the benefits of a 529 account. The site outlines what potential savers can expect of the investment process and highlights best practices and essential tools for success.
“As one of the first movers in the 529 account market, we’re extremely excited to see how much savings progress account owners have made over the years,” states Jeff Howkins, president of Ascensus’ education savings division. “This milestone marks an unforgettable moment not only for our firm, but also for American families who have taken steps to save for the education their beneficiaries need to achieve their dreams.”
About Ascensus
Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare—through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports over 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.7 million IRAs and health savings accounts. As of September 30, 2017, Ascensus had over $158 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.
View career opportunities at careers.ascensus.com/page/show/tpa and careers.ascensus.com or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.
1Average Published Undergraduate Charges by Sector, 2016-2017; 1-year tuition at an in-state, public four-year university: $20,090. Source: The College Board, Annual Survey of Colleges.
Before investing in any 529 plan, please consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s 529 plan.
Investment objectives, risks, charges, expenses, and other important information such as specific benefits, limitations, rules and guidance are included in a 529 plan’s offering statement/disclosure statement; read and consider it carefully before investing.
When you invest in a 529 plan you are purchasing municipal securities whose value will vary with market conditions. Depending on market conditions, you could lose all or a portion of your money by investing in a 529 plan. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences. Consult with a tax advisor for specific tax applications or consequences.
Ugift® is a registered service mark of Ascensus Broker Dealer Services, LLC.
The Ascensus Ugift program has reached the milestone of $500 million gifted to 529 accounts, as noted in a recent article by Financial Advisor. Launched in 2007, Ugift allows family and friends of 529 and ABLE account holders to electronically contribute toward a loved one’s education. The program first reached $100 million in contributions only a few years ago.
Gifting Platform Allows Savers to Crowdsource Enough to Fund One Year of Tuition for 25,000 Students
Dresher, PA—Ascensus, a technology-enabled service provider that helps more than 7 million Americans save for the future, is pleased to announce that over $500 million has been gifted to 529 college savings account beneficiaries through Ascensus’ Ugift® program. In total, these gifted dollars could fund one year of tuition at a public in-state, four-year university for nearly 25,000 students.1
“We’re thrilled that so many families have seen a meaningful increase in their college savings due to the generosity of family and friends. Our vision for Ugift was to provide a simple, easy tool for friends and family to gift into 529 accounts, and to see that vision fulfilled is truly gratifying,” says Peg Creonte, Ascensus’ senior vice president of business development for the college savings division. “We’re also delighted to offer Ugift to individuals living with disabilities and blindness as a benefit of their ABLE savings accounts.”
Ugift® first launched in 2007 and serves as a free and user-friendly service that enables family and friends to contribute money to a beneficiary’s 529 college savings account. Gift givers are provided a unique code for the beneficiary, which allows contributions to be made easily and securely. Parents have the ability to share their child’s account code with friends and family as the holidays, a birthday, or another major milestone approaches. Contributions can be given at any time, either electronically or by mail.
“Our Ugift program allows family and friends to join in the savings effort, helping account owners achieve their savings goals one gift at a time,” adds Creonte. “We’re excited to have facilitated half a billion dollars in gift contributions, and we look forward to helping more Americans give the gift of savings.”
All Ugift® contributions are directed to the beneficiary’s 529 college savings or ABLE savings account. Contributions can be made through the Automated Clearing House (ACH), a secure electronic network of financial transactions, or by check at any time with no associated fees for the beneficiary or contributor. For more information on Ugift®, visit Ugift529.com or UgiftABLE.com.
About Ascensus
Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare— through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports approximately 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.6 million IRAs and health savings accounts. As of June 30, 2017, Ascensus had over $155 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.
View career opportunities at careers.ascensus.com or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.
1 Average Published Undergraduate Charges by Sector, 2016-2017; 1-year tuition at an in-state, public four-year university: $20,090. Source: The College Board, Annual Survey of Colleges.
Before investing in any 529 plan, please consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s 529 plan.
Investment objectives, risks, charges, expenses, and other important information such as specific benefits, limitations, rules and guidance are included in a 529 plan’s offering statement/disclosure statement; read and consider it carefully before investing.
When you invest in a 529 plan you are purchasing municipal securities whose value will vary with market conditions. Depending on market conditions, you could lose all or a portion of your money by investing in a 529 plan. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences. Consult with a tax advisor for specific tax applications or consequences.
Ugift® is a registered service mark of Ascensus Broker Dealer Services, Inc.
CBS News recently published an article titled “Now you can crowdfund a 529 college savings plan,” which explains that more 529 plans are adding crowdfunding-like tools. This feature makes it easier for savers to ask family and friends to contribute to a child’s college fund. The article highlights the online platform aspect of our Ugift program, noting $120 million in contributions came through Ugift last year – a 38% increase from 2015.
Data Highlights How Americans Are Contributing to 401(k)s, 529 College Savings Plans, and Health Savings Accounts
Dresher, PA–Ascensus, a leading technology and service provider that helps more than seven million Americans save for the future, has released its annual trends report, Inside America’s Savings Plans. The report highlights the leading trends across the retirement, college savings, and health savings account (HSA) industries.
Ascensus analyzed data across over 47,000 retirement plans, nearly four million 529 college savings accounts, and over 200,000 HSAs for which it provides recordkeeping and administrative services. The firm also highlighted HSA industry data from partner Devenir, a national leader in providing customized investment solutions for HSAs and the consumer-directed healthcare market. The following trends reflect how Americans are taking steps toward saving for their financial future.
Millennials are beginning to outpace older generations in terms of saving.
- Young employees are beginning to participate in their employer’s retirement plan early in their careers. Employees under age 25 represent just nine percent of savers on Ascensus’ platform. But data shows they are taking proactive steps to save as they advance in their career, with the average 401(k) account balances of savers ages 25-34 nearly double that of their under 25 cohorts. Employees ages 25-34 represent the largest percentage of retirement savers on the Ascensus retirement platform, at just over 26%. This suggests that over one quarter of retirement savers recognize the importance of starting to save early.
- Millennial parents are the driving force for new account growth in the 529 market. While millennial parents represent a smaller percentage of overall 529 account owners on the Ascensus platform, data suggests they have become a driving force for new account growth. In 2016, there were over 800,000 account owners between the ages of 25-34 on the Ascensus College Savings platform, up from just 450,000 in 2011.
- Millennials are building a foundation of health savings. HSA owners under age 25 and ages 25-34 represented 20% of all HSAs on the Ascensus platform in 2016.
Savers are making real progress toward their goals but are still facing an overall savings deficit.
- 401(k) account balances across all generations are lower than will likely be required to cover retirement goals. According to the U.S. Bureau of Labor Statistics, the mean American income in 2016 equaled $49,630.1 Savers nearing retirement at ages 45-54 in this compensation range had just over $25,000 saved as of 2016 year end.
- The overall average 529 account balance would only partially fund a post-secondary education. According to The College Board, the average annual cost of an in-state, public four-year university during the 2016-2017 academic year was just over $20,000; the average annual cost of a nonprofit, private four-year university was over $45,000.2 529 account owners on the Ascensus platform had an overall average of just $22,000 saved. However, this average has increased year over year for account owners of all age segments, suggesting that more families appreciate the importance of saving early and often. In addition, every dollar saved in a 529 account is one less that the beneficiary or family will have to borrow to fund a post-secondary education. While the average 529 balance might not cover all college costs, these savings vehicles can serve to reduce student loan debt in the future.
- Healthcare expenses continue to rise exponentially for retirement-age Americans, while average HSA balances increase gradually. The Employee Benefit Research Institute estimates that a man would need $127,000 and a woman would need $143,000 saved by age 65 for a 90% chance of covering healthcare costs in retirement. As of 2016 year end, savers ages 65+ had an average HSA balance of just $3,618 as compared to $3,422 in 2015. However, these retirement-age savers likely have additional savings accounts, IRAs, and funding sources that they plan to use for future healthcare expenses.
Account owners and plan sponsors alike are seeing the value in making saving automatic.
- Automatic features boost retirement plan participation, setting employees on the right track. Plans designed with automatic enrollment features see an average participation rate of 78 percent, nine percent higher than participation in plans without automatic enrollment. Plans that combine automatic enrollment and automatic increase have an average participation rate of 81 percent.
- Employees are leveraging payroll direct deposit capabilities to make the 529 investment process automatic and easier to manage. More employees are opting to establish payroll direct deposit into their 529 accounts, making small contributions with each payroll cycle. Employers are supporting this increased interest among employees, too. Ascensus has seen a 13 percent year-over-year increase in the number of employers making payroll direct deposits into 529 accounts.
- With automatic gifting contributions, the college savings process becomes a joint effort. Ascensus College Savings’ Ugift service enables 529 plan account owners to provide family and friends with a unique code to make gifting contributions online at their convenience. In the last five years, Ugift contributions have increased by over 500 percent, with $109,560,000 total Ugift contributions made in 2016.
- By pairing HSAs with high deductible health plans and enabling payroll direct deposit, employers are helping employees build a foundation of health savings. In 2016, 37 percent of HSA market growth was attributed to high deductible health plans offered by employers. Additionally, 46% of all dollars contributed to an HSA came from an employer. By offering payroll direct deposit into the accounts, employers are helping employees make contributing to health savings a habit. The average employee contributed a total of $1,786 to an HSA in 2016.
“Americans are making progress as they save for life’s most important milestones and they are embracing the available investment tools of 401(k)s, 529 plans, and HSAs,” said Bob Guillocheau, CEO and president of Ascensus. “We are thrilled to see the marked improvement across the board. Our main objective is to help Americans reach their savings goals and provide the necessary solutions to make their dreams a reality. We hope our data will offer financial institutions, financial advisors, and savings plan sponsors much-needed insight into how they can guide their clients and employees on a path to financial success.”
For additional trends and insights from Ascensus, visit http://pulse.ascensus.com.
1 National, State, Metropolitan, and Nonmetropolitan Area Occupational Employment and Wage Estimates, May 2016, U.S. Bureau of Labor Statistics.
2 Average Published Undergraduate Charges by Sector, 2016-17. Source: The College Board, Annual Survey of Colleges.
About Ascensus
Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare—through technology and service solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of banks, credit unions, states, governments, financial professionals, employers, and individuals. Ascensus supports approximately 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. For more information about Ascensus, visit www.ascensus.com.
Before investing in any 529 plan, you should consider whether your or the designated beneficiary’s home state offers a 529 plan that provides its taxpayers with state tax and other benefits that are only available through the home state’s 529 plan. You also should consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plans’ features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
Investment objectives, risks, charges, expenses, and other important information such as specific benefits, limitations, rules and guidance are included in a 529 plan’s offering statement; read and consider it carefully before investing.
When you invest in a 529 plan you are purchasing municipal securities whose value will vary with market conditions. Investment returns will vary depending upon the performance of the portfolios in the 529 plan you choose. Depending on market conditions, you could lose all or a portion of your money by investing in a 529 plan. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences. Carefully read any disclosure statements and detailed information relative to your investment goals or needs, or consult with a tax advisor for their specific tax applications or consequences.
UgiftABLE.com Makes It Easy for Account Owners to Receive Gift Contributions
Dresher, Pennsylvania—Ascensus, a service and technology provider that helps more than 7 million Americans save for the future, is pleased to announce that it has launched Ugift® for ABLE savings accounts. Ugift® is a free, easy-to-use service that enables account owners to receive gift contributions via a simple and secure web experience. Originally created to help families saving for college, Ugift® has surpassed $400 million in gift contributions to 529 college savings plans since its inception in 2007.
ABLE savings accounts allow people with a disability or blindness to save for the future without jeopardizing their federal disability benefits. Ascensus administers ABLE programs across 11 states, providing account administration, investment management, and marketing services. By launching Ugift® for ABLE accounts, the firm aims to help account owners continue to grow their savings with gift contributions.
Family and friends can visit UgiftABLE.com at their convenience, enter the unique gifting code for the ABLE account, and complete their contribution in just a few minutes. Contributions can be made electronically from the gift givers’ bank account or by check at any time.
“The ABLE program allows people living with disabilities and blindness to save for the specialized care and resources they need,” states Jeff Howkins, president of Ascensus’ college savings division. “Through Ugift®, friends and family members can easily join these savings efforts to help account owners meet their goals.”
For more information on the Ugift® program for ABLE savings accounts, visit UgiftABLE.com.
Before investing in any ABLE program, you should consider whether your home state offers an ABLE program that provides its taxpayers with favorable state tax or other benefits that are only available through the home state’s ABLE program. You also should consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s ABLE program, or any other ABLE program, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
Investment objectives, risks, charges, expenses, and other important information are included in an ABLE program’s offering statement; read and consider it carefully before investing.
Investment returns are not guaranteed, and you could lose money by investing in an ABLE program. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.
An account in an ABLE plan is controlled by the account owner. Your gift contribution may have gift tax consequences or other tax implications. Please consult your tax advisor.
ACRS and its affiliates do not provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.
Ugift is a registered service mark of Ascensus Broker Dealer Services, Inc.
* Not FDIC Insured (except for ABLE plans that offer an FDIC-insured portfolio) * No Bank, State, or Federal Guarantee * May Lose Value *
About Ascensus
Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare—through service and technology solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of banks, credit unions, states, governments, financial professionals, employers, and individuals. Ascensus supports over 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. For more information about Ascensus, visit www.ascensus.com.
View career opportunities at careers.ascensus.com or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.
CNBC recently quoted Suzanne Fetky, director of marketing at Ascensus College Savings, in this article titled “3 financial gifts for the holidays made easy.” Fetky notes the rising cost of an education is causing more parents to start crowdsourcing to fund their 529 college savings plans. Some plans offer features that allow family and friends to gift money directly to the 529 plans, similar to our Ugift program. “Typically, we see about 40 percent of annual Ugift contributions come in in December and January,” states Fetky.