🎓 How to maximize college savings with an Illinois Bright Start 529 direct plan?

Mr. Retirement with Jeremy Keil, CFP®, CFA® is breaking down how to get the most out of your Illinois 529 College Savings Plan while keeping your fees low and your tax deductions high. In Illinois, you can get a state income tax deduction of up to $10,000 per person contributing, or $20,000 if you're a married couple filing jointly.

Illinois offers a generous state income tax deduction, but it is capped annually. If you are rolling over a large balance from another state, consider splitting it across multiple tax years to maximize your benefit.

As Mr. Retirement with Jeremy Keil, CFP®, CFA® puts it, if you do have a significant balance in another plan then you might want to bring it in over time so that you keep getting that $10,000 deduction over the course of several different years.

The state has two main options. Bright Start is direct-sold, while Bright Directions is advisor-sold. The advisor plan usually charges a 3.5% upfront sales fee on your contributions. The direct plan skips this fee entirely.

As Jeremy Kyle notes, Bright Start the direct plan is going to be a lower cost. The bright directions while you get the help of the advisor is a higher cost and quite often comes with a 3 and a half% sales charge upfront.

Based on content by Jeremy Kyle on Mr. Retirement with Jeremy Keil, CFP®, CFA® (YouTube).

Original: Illinois 529 College Savings Plan | Smart Saving for Education

For further related reading, check out:

• Wisconsin 529 College Savings Plan | Edvest 529
• State Section 529 Deductions - Finaid