Quick facts on 529s.
A 529 Plan is an education savings plan operated by a state or educational institution and designed to help families set aside funds for education. It's named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996.
- Tax-deferred earnings and tax-free withdrawals for qualified expenses1
- State income tax deduction for Idaho taxpayers of up to $6,000 ($12,000 married, filing jointly) per year from adjusted gross income2
- Estate planning advantages: reduce your personal taxable estate by making five years' worth of gifts (up to $85,000; $170,000 married, filing jointly) in one lump sum3
- 20% tax credit for Idaho employers of up to $500 per employee, per year for contributions made to the employee’s IDeal account4
Qualified withdrawals from a 529 account can be used toward1:
K-12: Tuition only. Withdrawals are limited to tuition payments up to $10,000 per year, per student.
- certain room and board costs
- mandatory fees
- books and supplies
- computer software and internet access
Funds can be used at any K-12 public, private or religious school and at any eligible higher education institution anywhere in the country, not just in Idaho, including5:
- 2- or 4-year colleges or universities
- vocational/technical schools
- career retraining schools
- dual credit courses
- graduate schools
Apprenticeship programs: Expenses required for participation in a program registered and certified with the Secretary of Labor under the National Apprenticeship Act.
- books and supplies
- required equipment
Student loan repayments: Principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary, up to $10,000 lifetime, per individual.6
Anyone can take advantage of a 529 account. There are NO income or age limits for beneficiaries.
Investments are managed by The Vanguard Group, Inc., a leader in low-cost investing.
Three investment options
- Target Enrollment Portfolios: Portfolios will automatically shift from a growth-oriented allocation to a more conservative mix based on the year the beneficiary is expected to enter their education program.
- Fixed Asset Allocation Portfolios: covers the spectrum of investment styles, from aggressive growth to conservative Money Market funds; your investments don't change until you say so
- Savings Portfolio: a lower-risk, Federal Deposit Insurance Corporation (FDIC)-insured option for account owners seeking a conservative investment choice; managed by Sallie Mae Bank
- No commissions, loads, or sales charges
- Total annual asset based fee: 0.36% ($3.60 per $1,000 invested); the $20 annual account fee is waived if the account owner or beneficiary is an Idaho resident
- Savings Portfolio fee: 0.34% ($3.40 per $1,000 invested)
Using IDeal 529 accounts, you can save up to $500,000 for each beneficiary.
Grow your savings with:
- Ugift® - Give College Savings: Invite family and friends to celebrate with gift contributions
- Upromise®: Earn college savings on everyday purchases
- College of Western Idaho Matching Grants: up to $500 per semester for qualifying students
Available at 866.433.2533, Monday through Friday from 6 a.m. to 6 p.m., Mountain Time
$25 to start
- Open an account (by check) for just $25
- Contribute automatically for as little as $25/month or $75/quarter ($15 with payroll direct deposit, where available)
Easy to enroll
- Open an account after reading about the plan's features and benefits. You'll be asked to choose:
- a beneficiary (the future student)
- how you'll be contributing
- how you'd like your money to be invested (see below)
- Choose an investment option that's right for you.
- Start saving. Even small, regular contributions can add up over time.