OppenheimerFunds Inc. became program manager in July 2007. The Illinois Bright Start College Savings Program -- Direct-sold Plan features a choice of blended portfolios, which combine actively-managed and passively-managed underlying investments, and index portfolios. The blended portfolios are managed by OppenheimerFunds affiliates, Vanguard, and American Century. The index portfolios utilize Vanguard index funds and a money market fund managed by OppenheimerFunds..
- Summary: OppenheimerFunds Inc. became program manager in July 2007. The Illinois Bright Start College Savings Program -- Direct-sold Plan features a choice of blended portfolios, which combine actively-managed and passively-managed underlying investments, and index portfolios. The blended portfolios are managed by OppenheimerFunds affiliates, Vanguard, and American Century. The index portfolios utilize Vanguard index funds and a money market fund managed by OppenheimerFunds..
- Program type: Savings
- Program manager: OFI Private Investments, Inc., a subsidiary of OppenheimerFunds, Inc.
- 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: The minimum initial contribution is $25, and the minimum subsequent contribution is $15. Minimums may be lowered for employer-sponsored plans.
- Age-based investment options: Choose between Blended Age Based Portfolios and the Index Age Based Portfolios, each containing 6 portfolios of underlying equity, fixed income, and money market investments. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
- Static investment options: Select among 5 Blended Portfolios and three Index Portfolios. The Blended Portfolio choices are Equity, Balanced, Conservative Fixed Income, Fixed Income, and a Money Market Portfolio. The Index Portfolio choices are Equity, Balanced, and Fixed Income.
- Underlying investments: The Blended Portfolios invest in OFI-managed investment strategies and mutual funds, and an American Century bond fund. The Index Portfolios invest in Vanguard mutual funds.
- Enrollment or application fee: None.
- Account maintenance fee: None for Oppenheimer actively managed portfolios, $10 annually per portfolio for the Vanguard portfolio options.
- Program management fees: Blended Portfolios: 0.18% (includes 0.03% state administrative fee).
Index Portfolios: 0.14% (no state administrative fee).
No state administrative fee for the Money Market portfolio.
- Expenses of the underlying investments: Blended Portfolios: Ranges from 0.23% to 0.48%; 0.16% for the Money Market Portfolio
Index Portfolios: Ranges from 0.04% to 0.07%.
- Total asset-based expense ratio: 0.18% - 0.66%
- 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.
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