College savings: What professionals need to know
A college savings solution offering tax advantages and a wide range of investment portfolios for over 24 years.
Key facts
- A direct-sold plan well suited to the priorities of financial professionals: Low expenses, a disciplined investment approach as well as support and services tailored to the needs of advisors.
- Maximum Illinois taxpayer benefits: Tax-free growth and distributions when used for qualified higher education expenses. Individuals who file an Illinois state income tax return are eligible to deduct contributions they made to Bright Start 529: up to $10,000 per tax year as an individual or $20,000 if married filing jointly. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply.1
- Flexible use options to help minimize impact of changing client needs or priorities: Approved for a wide range of expenses and educational experiences at schools nationwide and many schools abroad. Account owners can change their beneficiary to another eligible beneficiary or simply withdraw assets for any reason (federal and state taxes and penalties may apply if not used for qualified education expenses).
- A disciplined set of investment portfolios: A full suite of self-adjusting Enrollment Year Portfolios that utilize a progressive glide path, creating a more gradual shift in asset allocation. In addition, Bright Start 529 offers Static Allocation and Individual Portfolios, allowing for more control over asset allocations. Investment Portfolios are managed by a dedicated 529 investment team and use funds from leading asset managers.
- Estate tax and legacy planning benefits:
- Estate tax exempt. Kiddie tax exempt. Generation skipping tax exemption eligible.
- Able to seed account with large upfront contribution–a lump sum gift of $90,000 if you’re a single filer or $180,000 if you’re married and prorate the gift over five years per the federal gift tax exclusion as of 2024.
- No limit on the number of accounts/beneficiaries.
- Account owner maintains control over assets.
- Simplified 529 account management: Access client data easily and quickly with Ascensus QuickView®.
- Planning tools and sharable resources: For example, use our college savings calculator to explore funding scenarios considering age, contribution levels and school choice as well as your assumptions for ROI and cost inflation.
What can you do?
- Include college savings as part of your periodic goal discussions.
- Encourage your clients to have dedicated college savings accounts as this may reduce the temptation to use retirement assets for college savings.
- Make sure college savings are invested in vehicles with appropriate risk-reward profiles and that your clients take advantage of available tax benefits.
- Use our Enrollment Year Portfolios on their own or fine-tune their risk/global exposure by mixing with an allocation of our Static Allocation or Individual Portfolios.
Helpful resources
- Plan Description: Download PDF
- Join a webinar or speak with a consultant: More information
Manage your clients accounts with 529 QuickView®
Easy 529 account management for financial professionals.
Need some help?
Give us a call
877-432-7444Monday–Friday
7:00 AM–7:00 PM CT
For those with a hearing impairment, please contact us at the number above via a relay service. Translation services available upon request.
Technical questions
For access, password reset and computer-related issues, call the dedicated 529 QuickView Help Desk.
888-823-4348Monday–Friday
7:00 AM–5:00 PM CT
More to explore
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Compare investment portfolios
We make it easy to choose investment portfolios that fit your financial needs and savings goals.
Discover your options -
Calculate the cost of college
Explore different scenarios to help you achieve your college savings goals.
Use our calculator -
See how your savings add up
Use our calculator to get a quick estimate of how much you could save for education.
Estimate your savings