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 higher 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
- Special deduction for Idaho taxpayers of up to $6,000 ($12,000 married, filing jointly) per year from adjusted gross income for tax periods beginning January 1, 2017. For tax periods 2016 and prior the deduction was $4,000 ($8,000 married, filing jointly)2
- Estate planning advantages: reduce your personal taxable estate by making five years' worth of gifts (up to $70,000; $140,000 married, filing jointly) in one lump sum3
Qualified withdrawals from a 529 account can be used toward1:
- certain room and board costs
- mandatory fees
- books and supplies
- computer software and internet access
Funds in a 529 account can be used at any eligible higher education institution anywhere in the country, not just in Idaho, including4:
- 2- or 4-year colleges or universities
- vocational/technical schools
- career retraining schools
- dual credit courses
- graduate schools
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
- Age-based Portfolios: these automatically adjust your portfolio to become more conservative as your child ages
- 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: 0.50% ($5.00 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 $350,000 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 8 a.m. to 8 p.m. ET
$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.