Illinois 529 plan

Illinois 529 Plan:

Program match on contributions: None

State tax deduction or credit for contributions: Contributions to any of Illinois' 529 plans of up to $10,000 per year for an individual taxpayer, and $20,000 per year for married taxpayers filing jointly, are deductible in computing Illinois taxable income. For a rollover contribution, only the principal portion is eligible for the deduction. Contribution deadline is December 31 postmark.

State tax recapture provisions:

Beginning in 2007, rollovers from this plan to an out-of-state program are included in Illinois taxable income to the extent of prior Illinois deductions. Nonqualified distributions apparently remain free from recapture.

Age-based investment options: Choose between the Blended Age Based Portfolios and the Index Age Based Portfolios, each containing six portfolios of underlying equity, fixed income, and money market investments. The "Blended" portfolios consist of a mixture of active and index funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static ("choice-based") investment options: Select among four Blended Portfolios and three Index Portfolios. The Blended Portfolio choices are Equity, Balanced, Fixed Income, and Principal Protection Income (a guaranteed investment contract). The Index Portfolio choices are Equity, Balanced, and Fixed Income. The "Blended" portfolios consist of a mixture of active and index funds.

Static Index Portfolios

Expenses: 0.20% - 0.68%; $10 maintenance fee


 * Direct link to 529 Plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans