The 529 college savings plans take center stage on May 29. The 529 College Savings Day is a national effort to discuss college expectations and goals with children.
“Too many families believe the dream of attending college is slipping away,” Treasurer Michael Frerichs said. “It is important for families to know that the first steps to that dream can be taken for as little as $25.”
The Bright Start or Bright Directions college savings account are administered by the Treasurer’s Office and can be opened here. Purchasers can choose investment options or use an advisor for guidance. Age-based options where the underlying investments become more conservative as the beneficiary gets closer to college-age also are available. Savings can be used at any qualified institution nationwide, including technical schools.
These tax-advantaged college savings accounts are called 529 plans because they are named after Section 529 of the Internal Revenue Code. InIllinois, 7 of 10 seniors graduated with college debt. The average balance was $28,500.