Account Management

Generally, 529 plan funds can be used tax-free for qualified education expenses at eligible educational institutions. These expenses may include tuition fees, certain room and board costs, books, supplies, and equipment.

More uses of qualified education expenses can be found at One Plan Many Paths.

You may use funds from your IDeal account to pay for the costs of Dual Credit courses as well as required books, as long as you are enrolled as a student at the postsecondary institution in which you are obtaining the credit.

Yes. Repayment of principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary, up to $10,000 lifetime, per individual, is considered a qualified higher education expense. However, if you make an education loan repayment from your Account, you may not also take a federal income tax deduction for any interest included in that education loan repayment.

No. You can use the assets in your account toward the costs of nearly any public or private, 2-year or 4-year college nationwide, as long as the student is enrolled in a U.S.-accredited college, university, graduate school, or technical school that is eligible to participate in U.S. Department of Education student financial aid programs. In fact, many U.S. colleges and universities now have campuses or locations outside of the country, where money from your account can be used.

You may also use the assets in your account for apprenticeship programs registered and certified with the Secretary of Labor under the National Apprenticeship Act, or for qualified K-12 expenses up to $20,000 per year, per student at K-12 public, private and religious schools, Trade schools, certifications.

Yes. Some Idaho colleges offer matching opportunities for students who use funds from their IDeal accounts to help pay for college expenses.

College of Western Idaho (CWI): Qualifying students who apply for federal financial aid and use distributions directly from their IDeal accounts to pay a portion of their tuition and fees may be eligible for a matching scholarship of up to $500 per semester. Certain restrictions apply, and funding is subject to availability. For complete details, visit cwi.edu/ideal.

College of Southern Idaho (CSI): Qualifying students may be eligible to receive a matching scholarship of up to $250 per semester when using funds from their IDeal accounts toward educational expenses. For eligibility requirements and full program details, visit https://www.csi.edu/financial-aid/scholarships/csideal.aspx.

Scholarship programs, eligibility requirements, and funding availability are subject to change, so students should refer to each institution's website for the most current information.

There are no restrictions on when you can use your account to pay for education expenses.

If a beneficiary doesn’t use all of their money or decides not to attend college, the account owner has the following options:

• Stay invested. You can leave the money in the account in case the beneficiary decides to attend school later. There is no age restriction for using the money.
• Change the beneficiary. You can change the beneficiary on your account at any time provided that the new beneficiary is an eligible “member of the family” of the former beneficiary. Please see the Disclosure Statement for more information on who qualifies.
• Withdraw the money for other uses. The earnings portion of a withdrawal not used for a beneficiary’s qualified higher education expenses is subject to federal and state income taxes and may be subject to a 10% federal penalty tax. For exceptions to this penalty, please see the Disclosure Statement.
• Rollover savings from your 529 plan account into a Roth IRA without incurring any federal income tax or penalty. The Roth IRA must belong to the same beneficiary, and the lifetime rollover limit is $35,000.

Additionally, any accumulated earnings that are withdrawn from your account must also be reported on the recipient’s income tax return for the year in which they are withdrawn. Contact your tax advisor to determine how to report a non-qualified withdrawal.

You can use your 529 plan funds for the qualified K-12 Expenses listed below as long as they are in connection with enrollment or attendance at an elementary or secondary public, private or religious school. The annual limit for K-12 expenses increased on January 1, 2026, to $20,000. Eligible K-12 Expenses include:

• tuition
• curriculum and curricular materials
• books or other instructional materials
• online educational materials
• certain tutoring or educational classes outside of the home
• fees for nationally standardized tests, advanced placement exams, or any exams related to college or university admission
• fees for dual enrollment in an institution of higher education
• certain educational therapies for students with disabilities

Withdrawals for these qualified expenses are free from federal and Idaho state income tax and the federal penalty tax (up to the annual limit).

If you are not an Idaho taxpayer, the state(s) where you pay income tax may differ in its state income tax treatment of K-12 expenses. It is the account owner's responsibility to ensure that distributions for K-12 expenses do not exceed the limit for a beneficiary. You should consult with a tax advisor regarding your individual situation.

Yes. Beginning July 5, 2025, qualified expenses include certain credentialing expenses and apprenticeship programs. There are several components to determining whether an expense is considered a Credentialing Expense for 529 purposes. A Credentialing Expense includes:

• tuition, fees, books, supplies and equipment required for enrollment or attendance in a Credential Program (defined below)
• certain testing or continuing education costs required to obtain or maintain a Credential (also defined below).

For example, if you need to take continuing education classes to maintain a Credential, those continuing education classes may be considered a qualified expense if the Credential meets the definition below.

A Credential can include:

1. A credential that is industry-recognized and is:
2. A certificate of completion of certain apprenticeship programs
3. An occupational or professional license issued or recognized by a state or the federal government, and any certification required to obtain the license
4. Any credential defined in Section 3(52) of the Workforce Innovation and Opportunity Act (WIOA), which includes industry-recognized certificates or certifications, apprenticeship completions, licenses, and associate or bachelor's degrees

A Credential Program is a program to obtain a Credential if it:

• Appears on a state list prepared under Section 122(d) of WIOA
• Is listed in the Veterans Benefits Administration WEAMS Directory
• Provides training or education that prepares individuals for an exam required to obtain or maintain a Credential (exam must be administered by a widely recognized credentialing body)
• Is identified by the Secretary of the Treasury (after consultation with the Secretary of Labor) as a reputable program for obtaining a recognized credential

Funds can also be used towards expenses for Apprenticeship Programs. Books, fees, supplies, and equipment required for participation in a program registered and certified with the Secretary of Labor under the National Apprenticeship Act.

Yes - Rollovers are allowable from an IDeal account into an ABLE account. The rollover must be for the same designated beneficiary (or to another beneficiary who is a Member of the Family). Amounts withdrawn from an IDeal account are subject to recapture of any Idaho state tax deduction for the periods including the year of the rollover and the prior year.

If you are not an Idaho taxpayer, the state(s) where you pay income tax may differ in its state income tax treatment rollovers from 529 plans to ABLE plans. You should consult your tax advisor regarding your individual situation, including whether to rollover to an ABLE account.

Sign in to your account and use your profile or account settings to update your mailing address, email, phone number, and other preferences. If you need help, contact Client Service at 1-866-433-2533 or clientservice@idsaves.org.

After you log in, you can make a one-time contribution from a linked bank account or schedule automatic contributions on a frequency you choose. You may also contribute by mail using the forms in Forms and Literature. Some employers offer payroll direct deposit into IDeal; check with your benefits office.