Illinois 529 College Savings Plan

About: The Illinois 529 College Savings Plan is a 529 plan is a tax-advantaged plan that is used specifically to save for college expenses. There are two types of 529 plans — 529 College Savings Plan and 529 Prepaid Tuition Plan.

Websites: https://www.brightstartsavings.com/

https://www.brightdirections.com

Phone #: 1-877-432-7444

Investment Options: Oppenheimer Funds Inc. became program manager in July 2007. The Illinois Bright Start College Savings Program — Direct-sold Plan features a choice of blended portfolios, which combine actively-managed and passively-managed underlying investments, and index portfolios. The blended portfolios are managed by OppenheimerFunds affiliates, Vanguard, and American Century. The index portfolios utilize Vanguard index funds and a money market fund managed by Oppenheimer Funds.

Tax Benefits: Contributions to an Illinois 529 plan of up to $10,000 per year by an individual, and up to $20,000 per year by a married couple filing jointly, are deductible in computing Illinois taxable income. For a rollover contribution, only the principal portion is eligible for the deduction.

The contribution deadline is December 31 postmark. For tax years ending on or between 12/31/09 and 12/31/20, employers may claim a credit against Illinois tax for 25% of matching contributions made to an employee’s account in an Illinois 529 plan, with a maximum annual credit of $500 per employee. Unused credits may be carried forward for five years.

State Residency Requirements: No state residency is required to participate in Idaho 529 College Savings Plans.

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