Advantages of the College Illinois! 529 Prepaid Tuition Program:
Peace of mind. This program locks in a contractual tuition rate that will never change. Rest assured, you'll have
all or part of your student’s college tuition covered. Not only can you buy peace of mind, but the College Illinois! 529 Prepaid
Tuition Program will save you thousands of dollars on it.
Freedom. When the time comes, your college student will be able to apply his or her benefits at almost any college or university
in the United States and even at the international postsecondary institutions recognized by the U.S. Department of Education as
eligible to receive federal financial aid.
Security. Once you purchase a College Illinois! 529 Prepaid Tuition Program contract, the price you pay for the tuition and fee
benefits that will be paid out when your college student starts school are locked in. Your contract benefits are not dependent on
the stock market’s performance because the College Illinois! 529 Prepaid Tuition Program’s conservatively managed funds insulate
your investment from the market’s fluctuations.
Stability. Rest assured your investment in a child’s college education is under the stewardship of the Illinois Student Assistance
Commission, an Illinois state agency founded more than 50 years ago with the mission of making college accessible and affordable for
all Illinois students.
Commitment. The College Illinois! 529 Prepaid Tuition Program is required to request a legislative appropriation of funds from
the Illinois General Assembly in the event the fund which pays out benefits is in danger of not being able to meet its obligation
to contract holders. Any such appropriation would then be made at the discretion of the General Assembly.*
Versatility. Secure a semester, a year, or more in myriad plan choices and payment options tailored to your needs and your budget.
Any adult – parent, grandparent, other family member or friend – can purchase or contribute to a plan as long as they or their
beneficiary has lived in Illinois for at least 12 months prior to the date of application.
Control. You are in control of your beneficiary’s benefits from your initial purchase to graduation, and you can even designate a
new beneficiary for your plan at any time.
Tax Advantages. State tax advantages include 100 percent tax-exempt earnings and a state income tax deduction up to $10,000
($20,000 per couple) for taxable years on or after January 1, 2005.
Federal tax advantages provide you with additional incentives, including 100 percent tax-exempt earnings and a gift-giving tax
exemption currently up to $13,000 in a single tax year. And if your contributions exceed $13,000 in a single tax year, federal tax
law permits beneficiaries to average the gift over five years.*
Savings Accounts and certain series of U.S. savings bonds may be rolled over to an account with another qualified tuition
program.*^
New as of 2009: The College Savings Employer Participation Initiative offers a new incentive for employers and their employees
to contribute to the State of Illinois 529 savings and prepaid tuition programs. Illinois employers can now 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.
*Please see Master Agreement and Disclosure Statement for more details. The College Illinois!® 529 Prepaid Tuition Program cannot
provide purchasers with any legal or tax advice. Purchaser should consult their own tax advisor concerning federal and state tax
implications of purchasing a contract.
^For more details or if you’re moving funds from an Illinois 529 college savings plan, please call us.
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