On 5/29, let’s discuss the many benefits of 529 Savings Plans. 529 plans can be used to fund the future costs of postsecondary education. This includes two-year and four-year institutions, vocational schools, trade schools, community colleges and technical schools. 529 funds can be used to cover tuition, room and board, books, computers and peripheral equipment.
Anyone can contribute to your child’s 529 plan; parents, grandparents, aunts, uncles, family friends, etc. Illinois provides an annual tax deduction up to $20,000 if you file jointly ($10,000 if not). The invested 529 funds grow “tax free” if they are used for the purposes discussed above.
In Illinois, the most common 529 plans are Bright Start and Bright Directions. Both offer a variety of investment options as well as flexible contribution options.
If you are interested in starting a 529 plan or have any questions about these plans, please contact us to discuss.