Back to School- 529 Savings Plans
529 Savings Plans were created back in 1996 to allow individuals a tax-advantaged way to save and pay for education expenses. These plans have been very successful. In fact, The Center for Social Development found that children who have a 529 plan are approximately three times more likely to attend college. We will discuss the plans available and how they work. Types of 529 Plans in Illinois Currently in Illinois, you can utilize two providers for 529 plans. One of the providers is Bright Star. Here, participants manage the 529 plan on their own. The second provider is Bright Directions . This provider allows financial advisors to manage the 529 plan for you. Managing the plan involves selecting the custodian and beneficiary, as well as choosing the investments. The custodian, an adult, is the person who makes the decisions for the plan. Primarily this includes handling contributions, investments, and distributions. The beneficiary is the pe...