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The Advantages Of A
College Illinois! 529 Prepaid Tuition Plan

The Advantages Of A College Illinois! 529 Prepaid Tuition Plan

The Power of Prepaid Tuition


By enrolling in a College Illinois! Plan, families enjoy a wide range of benefits and tax advantages that make prepaying for tuition a great decision. And the earlier you purchase your College Illinois! Plan, the more you'll save. Here are some powerful reasons to enroll in a plan right now.


Know Tuition is Taken Care Of

Enjoy the certainty of one price and set payments that allow you to lock in the cost of college today, so you can feel confident that tuition will be there tomorrow.

Meaningful Tax Advantages

On a state level, the increased value of a College Illinois! Plan is 100% exempt from Illinois State income tax. Contributions may also be deducted from Illinois State income, subject to certain limits. On a Federal level, benefits include 100% tax-exempt earnings and a gift giving tax exemption.*

Flexible Plans

You can purchase up to 9 semesters with multiple plan choices and payment options that fit your budget. College Illinois! allows you to increase or decrease the number of semesters in your plan any time prior to using plan benefits.

Adaptable Benefits

Your plan benefits can be used at almost any college or university in Illinois or the United States. Unused benefits can be transferred to another member of the family. If your child decides to transfer schools, benefits can be used at more than one school during their college career. Benefits can also be applied to graduate study tuition and fees, but will be paid out at the undergraduate tuition rate.

Simple Purchasing

Anyone who is 18 or older and a resident of the U.S. can purchase a contract for a future student. The Program also has a 1-year Illinois residency requirement that can be met by the purchaser or the beneficiary.

Versatile Funds

You can transfer funds from another qualified tuition program, Coverdell Education Savings Account or certain series of U.S. Savings Bonds to pay for a College Illinois! account or another qualified tuition program.


*Neither ISAC nor College Illinois! can provide you with legal or tax advice. Please consult your tax advisor concerning Federal and State tax implications of purchasing a contract.

Meaningful Tax Advantages


State:

  • 100% tax-exemption on benefits
  • A state income tax deduction for contributions up to $10,000 ($20,000 per couple).
  • The College Savings Employer Participation Initiative offers an incentive for employers and their employees to contribute to the State of Illinois 529 Savings and Prepaid Tuition Programs. Illinois employers claim a tax credit of up to $500 per contributing employee for one-fourth of the amount contributed each year toward employee 529 tuition plans.

Federal:

  • 100% tax-exempt on benefits.
  • Account owners can make a lump sum contribution of up to $70,000 per beneficiary or $140,000 if married and filing jointly and avoid incurring a gift tax on this amount by electing to use five years of the annual gift tax exclusion all in one year.*
  • You can rollover funds from a qualified tuition program, Coverdell Education Savings Accounts, and certain series of U.S. Savings Bonds to an account with another qualified tuition program.

*Please see Disclosure Statement and Master Agreement for more details. The College Illinois!® Prepaid Tuition Program cannot provide purchasers with legal or tax advice. Purchaser should consult their tax advisor concerning federal and state tax implications of purchasing a contract.
**Neither ISAC nor College Illinois! can provide you with legal or tax advice. Please consult your tax advisor concerning Federal and State tax implications of purchasing a contract.

Advantages to the Student


Planning ahead for your child can help to significantly reduce student loan debt. Your student can keep his or her school options open, knowing that plans are flexible—the value of plan benefits can be applied to almost any college or university in the U.S. and plans can be transferred to another beneficiary or used toward graduate studies.