SPRINGFIELD, Ill. -– Illinois State Treasurer Michael Frerichs is encouraging families to open an Illinois 529 College Savings plan or make an additional contribution in honor of May 29, also known as 529 Day.
Investments in a 529 college savings plan grow tax-free while in the account. Distributions are also tax-free when used for qualified expenses such as tuition and fees, books, or computers.
“A child is three times more likely to attend college if they know they have a college savings plan,” Frerichs said. “A simple turn of the phrase like 529 Day is a fun way to remind children that they have a 529 account and the tools needed to succeed for their future.”
Some employers allow payroll deductions into 529 plans. Recurring contributions also can be established through a checking or savings account.
Frerichs partnered with the College Savings Plan Network, a public private partnership of 48 groups in 28 states to increase awareness of 529 plans nationwide, to further encourage college savings. This is the first time state plans and their partners have joined together to launch a national campaign.
Together, Bright Start and Bright Directions have $11 billion in assets and more than 640,000 accounts.
For more information, visit ILCollegeSavings.com or call (877) 432-444.