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Bright Directions Advisor-Guided 529 College Savings Program

4 / 5

Our rating

Good IL resident benefits

IL resident benefits

The Illinois Bright Directions Advisor-Guided 529 College Savings Program, sold through brokers and fee-based financial advisors, features an extensive multi-manager platform offering a large number of age-based, static multi-fund, and individual-fund options. In November 2017, the Bright Start Advisor-Sold College Savings Program combined with the Illinois Bright Directions Advisor-Guided 529 College Savings Program. Investments in Bright Start Advisor-Sold College Savings Program accounts were automatically transitioned to the corresponding Bright Directions portfolios. To find a financial advisor in your area, use the Directory of Financial Professionals.

Bright Directions Advisor-Guided 529 College Savings ProgramHigh Honors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2005

State agency

Illinois State Treasurer

Tax deduction

For single filers: $10,000/yr per beneficiary

For joint filers: $20,000/yr per beneficiary

Program manager

Union Bank & Trust Company of Lincoln, Nebraska

Program distributor

Northern Trust Securities, Inc.

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

Individuals 18 years of age or older, UGMA/UTMA custodians, a Trust, and certain legal entities.

Significant time or age restrictions imposed by the program:

None.

Contributions

Maximum contributions:

Accepts contributions until all account balances in Illinois' 529 plans for the same beneficiary reach $500,000.

Minimum contributions:

No minimum

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers an online tool to share a gift contribution link with family and friends.

Investment Options

Investors in Bright Directions Advisor-Guided 529 College Savings Program can select from the following investment options. Click on a portfolio name for more information.

The Age-Based option is offered in 3 different risk levels (Aggressive, Moderate, and Conservative) each containing 9 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
PortfolioE.R. % Equity1yr performance
Index Age-Based Moderate 0-2 years old0.05%84%6.61%
Index Age-Based Moderate 3-5 years old0.44%75%6.45%
Index Age-Based Moderate 6-8 years old0.44%65%6.51%
Index Age-Based Moderate 9-10 years old0.44%56%6.05%
Index Age-Based Moderate 11-12 years old0.45%46%5.93%
Index Age-Based Moderate 13-14 years old0.44%37%5.98%
Index Age-Based Moderate 15-16 years old0.44%28%5.75%
Index Age-Based Moderate 17-18 years old0.44%18%5.63%
Index Age-Based Moderate 19+ years old0.43%9%5.24%
Age-Based Aggressive: 0-2 years old0.8%100%3.9%
Age-Based Aggressive: 3-5 years old0.78%90%4.08%
Age-Based Aggressive: 19 years and older0.64%20%5.22%
Age-Based Aggressive: 6-8 years old0.77%80%4.22%
Age-Based Conservative: 0-2 years old0.77%80%4.22%
Age-Based Conservative: 3-5 years old0.75%70%4.4%
Age-Based Conservative: 6-8 years old0.75%60%4.47%
Age-Based Conservative: 9-10 years old0.74%50%4.66%
Age-Based Conservative: 19 years and older0.49%0%5.14%
Age-Based Moderate: 0-2 years old0.78%90%4.08%
Age-Based Moderate: 3-5 years old0.77%80%4.22%
Age-Based Moderate: 6-8 years old0.75%70%4.4%
Age-Based Moderate: 9-10 years old0.75%60%4.47%
Age-Based Moderate: 11-12 years old0.74%50%4.66%
Age-Based Aggressive: 9-10 years old0.75%70%4.4%
Age-Based Aggressive: 11-12 years old0.75%60%4.47%
Age-Based Aggressive: 13-14 years old0.74%50%4.66%
Age-Based Aggressive: 15-16 years old0.72%40%4.81%
Age-Based Aggressive: 17-18 years old0.68%30%4.94%
Age-Based Conservative: 11-12 years old0.72%40%4.81%
Age-Based Conservative: 13-14 years old0.68%30%4.94%
Age-Based Conservative: 15-16 years old0.64%20%5.22%
Age-Based Conservative: 17-18 years old0.57%10%5.13%
Age-Based Moderate: 13-14 years old0.72%40%4.81%
Age-Based Moderate: 15-16 years old0.68%30%4.94%
Age-Based Moderate: 17-18 years old0.64%20%5.22%
Age-Based Moderate: 19 years and older0.57%10%5.13%

Age-based/Enrollment Year investment options:

The Age-Based option is offered in 3 different risk levels (Aggressive, Moderate, and Conservative) each containing 9 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 7 multi-fund Target portfolios with varying risk tolerances and 36 individual-fund portfolios, including an FDIC-insured option. Fifteen additional individual portfolios invest in Vanguard ETF funds and are available only to account owners who establish an account through a registered investment advisor or advisor who is not compensated through commissions.

Underlying investments:

T. Rowe Price, DFA, Dodge & Cox, BlackRock, Fidelity, American Century, Baird Funds, Delaware Funds, Harbor Funds, Northern Funds, iShares, Principal Funds, Calvert, Credit Suisse, Alliance Bernstein, PGIM Investments, Ariel Investments, MFS, Invesco, American Beacon, Sit Mutual Funds, Vanguard (F only) and UBT/Nelnet

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

None

Program management fees:

0.17% program management fee (including 0.025% state fee), plus distribution/servicing fees of 0.25% (Classes A and E), plus distribution/servicing fees of 0.50% (Class C), or 0.00% distribution/servicing fee (Class F). 0.14% manager fee (no state or distribution fee) for Invesco Government Agency 529 Portfolio.

Expenses of the underlying investments:

Ranges from 0.06% to 0.38% (portfolio weighted average) in the age-based and static multi-fund portfolios, 0.025% to 0.87% in the individual-fund portfolios; 0.035% to 0.12% in the individual fund ETF portfolios; and none for the Bank Savings 529 Portfolio.

Total asset-based expense ratio:

Class A: 0.14% - 1.29%
Class C: 0.14% - 1.54%
Class E: 0.14% - 1.29%
Class F: 0.14% - 1.04%;0.20% to 0.29% in the individual fund ETF portfolios

Broker loads and commissions:

Breakpoint pricing:

Does breakpoint pricing include non-529 assets under rights of accumulation policies

Taxes and other Benefits

Tax deduction for single filers:

$10,000/yr per beneficiary

Tax deduction for joint filers:

$20,000/yr per beneficiary

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to an Illinois 529 plan of up to $10,000 per year by an individual, and up to $20,000 per year by a married couple 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. For tax years ending on or before December 31, 2024, employers may claim a credit against Illinois tax for 25% of matching contributions made to an employee's account in an Illinois 529 plan, with a maximum annual credit of $500 per employee. Unused credits may be carried forward for five years.

Calculate your Illinois 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a Illinois 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

Effective January 1, 2007, rollovers from this plan to an out-of-state program are included in Illinois taxable income to the extent of prior Illinois deductions. Effective January 1, 2009, nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs, participation in an apprenticeship program, and interest and/or principal on qualified education loans up to a $10,000 lifetime cap. This does not include tuition for elementary or secondary education. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from an Illinois 529 plan are exempt. Qualified distributions from a non-Illinois plan are exempt provided the plan meets certain disclosure requirements.

State tax treatment of rollovers:

Illinois follows federal tax-free treatment except that, beginning in 2007, outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, Bright Directions 529 Rewards Visa with a 1.529% reward on qualifying purchases.

The Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

Contact

Website:

http://www.brightdirections.com

Telephone:

1-866-722-7283

Telephone for broker use:

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