IDEAL 529 SAVINGS PLAN
What is it?
The IDeal 529 is a savings plan designed to help families and students save money on educational expenses. Originally this plan was designed as a way to save for college, but thanks to recent changes in tax law families can now also use money in this account for tuition payments to a K-12 school, such as St. Mary’s Catholic School!
How will choosing this option save me money as opposed to a traditional savings account?
All contributions to your child’s 529 plan grow tax deferred, and any money used towards qualifying educational expenses is exempt from both Federal and State taxes. This account also can get you a State Tax Deduction of up to $6,000 when filing single ($12,000 when filing jointly).
What is a “qualifying educational expense”?
- Tuition for an accredited K-12 public, private or religious school (i.e. — your St. Mary’s tuition!)
Limited use of $10,000 from this account for this purpose per student, per year
- College expenses, including:
Tuition for private and public colleges/universities, two and four-year programs, vocational/technical schools, and career retraining programs.
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- Fees
- Room and board (it can be used towards off campus room and board as long as it does not exceed what room and board would be on campus)
- Books and required supplies
- Laptops/computers, internet access, and software
- No limits on amounts used per student, per year
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How do I use the money from my child’s 529 plan to pay their St. Mary’s tuition?
You can designate IDeal to deposit the needed amount from the 529 plan into your bank account, and then you pay St. Mary’s directly.
How do I make contributions to my child’s 529 plan?
You can have funds electronically drafted from your checking or savings account, you can send a check made payable to IDEAL – Idaho College Savings Program, or you can designate an amount to be automatically drafted from your paycheck.
How do I open a 529 savings plan?
You can open one easily online by clicking here — you’ll just need to have your address, you and your child’s Social Security numbers, and at least $25 to open the account with.
This sounds kind of complicated…is anyone actually using this?
Many of our St. Mary’s families have opened 529 plans for their students. They found the process easy and are already seeing major benefits!
What if I have more questions?
IDeal has an extremely thorough and user-friendly website you can check out here. You’ll find more in-depth descriptions of the plan, the various investment options, and everything you need to know about managing and contributing to the account. It’s also a good idea to discuss this option with your CPA and your financial planner.
Disclaimer: Information is deemed reliable but not guaranteed. IDEAL program guidelines are subject to change without notice and should be verified with your Certified Public Accountant, Attorney and Financial Planner.