Illinois 529 Plans

Illinois offers three college savings plans: Bright Directions College Savings Program, a traditional, advisor-sold plan; Bright Start College Savings, a direct and advisor-sold tuition plan; and College Illinois!, a pre-paid college tuition plan.

Bright Directions College Savings Program

Bright Directions College Savings Program is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Advisor - Please contact a financial advisor in your state for assistance.

Fund Family: Various

Minimums: Contact Advisor

Maximum Contributions:  Currently, you can contribute until your account balance reaches $320,000 in your Illinois 529 plans.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Good news for Illinois residents -- by investing in your state's 529 plan, you can deduct up to $10,000 on your state income taxes for single filer and $20,000 for married filers.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Residency: Most 529 plans are open to residents of the United States.

You can learn more about the this 529 plan at the official web site.

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Bright Start College Savings

Bright Start College Savings is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct and Advisor – this Illinois 529 plan can be purchased directly from the state or through a financial advisor.

Fund Family: OppenheimerFunds Inc.

Minimums: To get started you can deposit $25, and the minimum subsequent contribution is $15.

Maximum Contributions:  Currently, you can contribute up to $320,000 to your Illinois 529 plan.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  By investing in your state's 529 plan, you can deduct up to $10,000 on your state income taxes for single filer and $20,000 for married filers.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Other benefits:  Through your IDeal Plan, you have the option to be a part of a reward program set up by Upromise. By making purchases with your card, the reward program offers a percentage of purchases that convert into rewards points, and ultimately convert into account contributions.

Residency: Most 529 plans are open to residents of the United States.

You can learn more about the this 529 plan at the official web site.

College Illinois

Illinois also offers a pre-paid tuition plan that lets you lock in today's rates for college.  It can be used to pay for in and out-of-state public universities and community colleges, and private colleges and universities around the country. However, private and out-of-state college expenses will be prorated and may not be fully covered.

For more information about College Illinois!, visit the official website http://www.collegeillinois.org/.