General InformationDownload PDF Report
Tomorrow's Scholar 529 Plan
Voya, under contract with TIAA-CREF Tuition Financing, Inc., manages Wisconsin's Tomorrow's Scholar® 529 savings program. Voya succeeded Wells Fargo as program manager in late October 2012. The revised program features nine age-based options, five static allocation options, and 18 single fund options investing in Voya mutual funds and other mutual funds managed by BG Overseas, BlackRock Financial Management, Brookfield, Credit Suisse, DIFA, Goldman Sachs, Hahn Capital Management, JPMorgan, Lazard, LSV, Polaris, TIAA CREF, Van Eck, Voya IM, and Wellington Management To find a financial advisor in your area, use the Directory of Financial Professionals.
- Program typeSavings
- Inception2001, but substantially changed in 2012
- State agencyWisconsin Department of Financial Institutions
- Tax deduction
- Program ManagerVoya (Voya Investments Distributor, LLC and Voya Funds Services, LLC)
- Program distributorVoya Investments Distributor, LLC
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
State residency requirements:None
Who can be a participant/owner in the program?Individuals and Joint Owners of legal age, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:None
Maximum contributions:Accepts contributions until all account balances in Wisconsin's 529 plans for the same beneficiary reach $472,000.
Minimum contributions:$250, or $25 per month with the automatic contribution plan.
Age-based investment options:The Age-Based Option contains 9 portfolios offering a mix of underlying funds. Contributions are placed into the portfolio corresponding to the age of the beneficiary, and later reassigned to more conservative portfolios as the beneficiary approaches college age. Account owners may use the beneficiary's actual age or hypothetical age at enrollment.View more age-based investment options
Static investment options:Select among 5 multi-fund portfolios with varying risk tolerances and 22 single fund options.View more static investment options
Underlying investments:BG Overseas, BlackRock Financial Management, CBRE Clarion, Credit Suisse, DIFA, Goldman Sachs, Hahn Capital Management, JPMorgan, Lazard, LSV, Polaris, Van Eck, Voya IM, and Wellington ManagementView a full list of this plan's investment options
Underlying fund allocations:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
Fees & Expenses
Enrollment or application fee:None, but contributions may be subject to a sales charge depending on share class.
Account maintenance fee:$25 annually per account option with $25,000 or less, waived with automatic deposits of $25 per month in each option (active for the 12 previous months without interruption or since account opening). AR shares are not subject to the $25 annual maintenance fee.
Program management fees:0.15% management fee (includes 0.07% fee to the state), plus distribution/servicing fees of 0.25% (Class A), 1.00% (Class AR for Rollovers), 1.00% (Class C), 0.50% (Class C1; TIAA-CREF portfolios), none (Class W), and 0.05% for TIAA-CREF Principal Protection Option. Class AR shares convert to Class A shares after one year at which time distribution/servicing fees are 0.25%. Class C shares convert to Class A shares after six years, at which time distribution/servicing fees are 0.25%.
Expenses of the underlying investments:Ranges from 0.34% to 0.73% (portfolio weighted average) in the age-based and static allocation portfolios, 0.05% to 1.12% in the single fund portfolios, none for the TIAA-CREF Principal Protection portfolio.
Total asset-based expense ratio:Class A: 0.20% - 1.52%
Class AR (for rollovers): 1.20% - 2.27%
Class C: 1.48% - 2.27%
Class C1 (TIAA-CREF portfolios): 0.70% - 0.77%
Class W: 0.20% - 1.27%
Broker loads and commissions:UNLOCK PRO
Breakpoint pricing:UNLOCK PRO
Does breakpoint pricing include non-529 assets under rights of accumulation policiesUNLOCK PRO
Taxes and other Benefits
- Tax deduction for single filers$3,200/yr
- Tax deduction for joint filers$3,200/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:None.
State tax deduction or credit for contributions:Contributions to a Wisconsin 529 plan of up to $3,280 per beneficiary per year (any filing status) are deductible in computing Wisconsin taxable income. The maximum annual deductible will be increased annually to reflect inflation. Contributions in excess of the maximum annual limit may be carried forward to one or more future years and deducted up to the then annual maximum deductible amount each year until all amounts invested have been deducted from Wisconsin taxable income. Incoming rollovers from other states' 529 plans are accepted. Beginning with the 2015 tax year, the portion that is principal or contributions may qualify for reducing Wisconsin taxable income, including carry-forward for subsequent years; the portion attributed to growth is not eligible. Amounts that received an earlier Wisconsin reduction are not eligible. Contributors do not need to be the account owner to claim the deduction. Any Wisconsin taxpayer may claim a deduction for contributions to any account. Contribution deadline is April 15 of the year following the tax year. Parents no longer need to claim their child as a dependent in order to claim the deduction; however, the maximum deduction is reduced to $1,640 for a parent who is married and filing separately or who is divorced, unless the divorce judgment specified a different division of the $3,280 combined maximum.
Effective January 1, 2018, corporations, partnerships, limited liability companies, and tax-option corporations are eligible for a nonrefundable business income and franchise Wisconsin state tax credit for an amount equal to 25% of the amount paid into each of their employee's Wisconsin Trust account up to a maximum of $800 (adjusted annually for inflation) per employee per tax year.