Build a legacy of higher education for your loved ones
A family who saves money for college can greatly impact (up to seven times) their child’s likelihood of going on to complete education.1 Unfortunately, most parents just can’t cover 100% of their children’s college tuition so many young people today are faced with the decision of incurring student loan debt or abstaining from college altogether. As a grandparent, you can help alleviate this concern and brighten your grandchild’s future by contributing to an IDeal college saving program from as early as birth, or at any stage of their education.
How will your grandchild benefit?
The IDeal college savings plan can be used for qualified higher education expenses such as tuition, room and board, fees, computers, books and supplies at private universities, in-and-out-of Idaho state universities, international universities and technical colleges. You may also choose to use an IDeal account to pay for your grandchild’s registered qualified or eligible apprenticeship program, qualified student loan repayments, or K-12 tuition at public, private or religious schools.
How will you benefit?
Idaho taxpayers can receive a state tax deduction of up to $6,000 per individual or $12,000 if married and filing jointly. Your account earnings grow, tax-deferred, and are free from both federal and Idaho state income tax when used for qualified education expenses. The maximum investment per beneficiary is $500,000 and annual contributions of up to $16,000 per individual/$32,000 if married and filing jointly, are not imposed with the federal gift tax.
So, how do you get started?
With as little as $25 and just a few minutes, you can open an account on behalf of of your grandchild. There are several investment options available and selecting the right option for you may simply come down to your financial management preferences and family dynamics. We suggest reviewing these options with your financial professional and then coordinating with the parents of your grandchild so that everyone is aware and involved with the plan. Before you get started, you will need the following beneficiary information:
- Full name
- Date of birth
- Relationship to you
- Social Security Number
- Full address
- Phone number
Want to contribute to an existing IDeal account?
If your grandchild is already an IDeal account beneficiary, you can contribute directly to that account through Ugift, our free-to-use service for family and friends. If you are an Idaho taxpayer, and the account is with IDeal – Idaho 529 College Savings program, you will be eligible for the same state tax deduction benefits as if you owned the account. To learn more about gifting, visit our Ugift page.
Helping busy parents get started
If you and your grandchild’s parents have decided that you would like to open a new IDeal account, but you would like the parents to be the account owner, you can help initiate the process by:
- Downloading an enrollment kit here
- Filling out the paperwork on behalf of the parents
- Including a check for $25 or more
- Prepare the envelope for mailing
The enrollment kit contains important information that should be reviewed and discussed by all parties. Once completed the parents can review and sign the documents and drop the packet in the mail.
Regardless of how your grandchild’s IDeal – Idaho 529 College Savings account is set up, you can rest assured that your contribution will demonstrate to your loved ones the importance you place on education and the confidence you have in your grandchild’s future.