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

I'm 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 Jeremy Kyle 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 you know 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 and 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