Paying for College

Bright Start 529 College Savings Program

Many families will send their children to college in the coming months. Families who used a Bright Start 529 college savings plan are well-positioned to meet the financial demands of higher education. Here are some tips to remember to take maximum advantage of the program:

• Make sure you keep receipts. Bright Start does not require proof of your expenses, but you will want documentation in the event the IRS asks questions.
• Match any withdrawal from your Bright Start account in the same calendar year as the college expense.
• Checks from Bright Start can be issued to the person who controls the account, the student, or the school. If paid to the student or school, the money may need to be reported on the student’s income taxes.
• If a student receives a refund, the money must go back into the Bright Start account within 60 days to avoid taxes.
• More information regarding qualified expenses and answers to other common questions about the Bright Start 529 plan can be found here.

Remember, independent analyst Morningstar rated Bright Start a Gold Rated plan, the highest available rating.

Subscribe and Read the Treasurer’s Office’s eNewsletter: http://bit.ly/IllinoisTreasurer

View past issues of the newsletter here.