The Illinois Bright Directions College Savings Program, sold through brokers and fee-based financial advisors, features an extensive multi-manager platform offering a large number of age-based, static multi-fund, and individual-fund options.
- Summary: The Illinois Bright Directions College Savings Program, sold through brokers and fee-based financial advisors, features an extensive multi-manager platform offering a large number of age-based, static multi-fund, and individual-fund options.
- Program type: Savings
- Program manager: Union Bank and Trust Company of Lincoln, Nebraska
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Illinois' 529 plans for the same beneficiary reach $350,000.
- Minimum contributions: No minimum.
- Age-based investment options: The Age-Based option is offered in 3 different risk levels (Aggressive, Growth, and Balanced) each containing 5 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
- Static investment options: Select among 7 multi-fund Target portfolios with varying risk tolerances and 32 individual-fund portfolios. Certain portfolios consist of underlying investments managed by women- and minority-owned investment managers. Fifteen additional individual portoflios invest in Vanguard ETF funds and are available only to account owners who establish an account through a registered investment advis or advisor who is not compensated through commissions.
- Underlying investments: T. Rowe Price, DFA, Dodge & Cox, American Century, BlackRock, MainStay, Baird, Delaware Funds, Eagle, Northern Funds, William Blair, Voya, PIMCO, Calvert, Templeton, Ariel Investments, MFS, Oppenheimer Funds, Sit Mutual Funds, and Causeway and Vanguard (Class F only).
- Enrollment or application fee: $10, contributions may also be subject to a sales charge depending on share class.
- Account maintenance fee: $3 per quarter
- Program management fees: 0.37% manager fee (including 0.05% state fee), plus distribution/servicing fees of 0.25% (Classes A and E, except 0% for Money Market), 0.50% (Class C, except 0% for Money Market), or 0% (Class F). 0.35% manager fee (including 0.03% state fee) for Class F Vanguard ETF portfolios.
- Expenses of the underlying investments: Ranges from 0.26% to 0.49% (portfolio weighted average) in the age-based and static multi-fund portfolios, 0.08% to 1.34% in the individual-fund portfolios, and 0.72% to 1.34% in the female- and minority-owned portfolios.
- Total asset-based expense ratio: Class A: 0.44% - 1.96%
Class C: 0.44% - 2.21%
Class E: 0.44% - 1.96%
Class F: 0.43% - 1.71%
- Program match on contributions: None.
- State tax deduction or credit for contributions: Contributions to an Illinois 529 plan of up to $10,000 per year by an individual, and up to $20,000 per year by a married couple filing jointly, are deductible in computing Illinois taxable income. For a rollover contribution, only the principal portion is eligible for the deduction. Contribution deadline is December 31 postmark. For tax years ending on or between 12/31/09 and 12/31/20, employers may claim a credit against Illinois tax for 25% of matching contributions made to an employee's account in an Illinois 529 plan, with a maximum annual credit of $500 per employee. Unused credits may be carried forward for five years.
- Web site: Click here to visit
- Telephone: 1-866-722-7283