Roll over to Bright Directions.

Rolling an out-of-state 529 plan into Bright Directions is an easy process that can provide significant benefits. As you look into the potential for a rollover, be sure to review the considerations and benefits with your tax and financial advisors.

Three Easy Steps to Completing a Rollover:

  1. Review your existing out-of-state 529 with your tax and financial advisors. Consider any surrender charges or penalties the out-of-state 529 plan may impose.

  2. If you don’t have a Bright Directions account, contact your financial advisor to establish one.

  3. Complete the Rollover Form1 with your financial advisor.

    • Obtain a Medallion Signature Guarantee on the form to confirm your identity and the transfer of securities.
    • Attach a copy of the latest statement from your out-of-state 529 plan.
    • Mail the form to Bright Directions, and let us handle the rest.

Three Great Benefits of Rolling Over to Bright Directions

  1. The State of Illinois offers an income tax deduction of up to $10,000 ($20,000 if filing jointly) for contributions to Bright Directions. The Illinois Administrative Code provides that in the case of a rollover from a non-Illinois qualified tuition program, the amount of the rollover that is treated as a return of the original contribu­tion to the prior qualified tuition program (but not the earnings portion of the rollover) is eligible for the deduction for Illinois individual income tax purposes.

  2. The program offers access to over 20 quality fund families.

  3. You can invest in Fee Structure A with no front-end load. If you previously paid a front-end sales charge, contributions that constitute a qualified rollover distribution from another 529-qualified tuition program or a Coverdell Education Savings Account may be made to accounts under Fee Structure A without the imposition of an initial sales charge. This initial sales charge waiver is only available through certain broker-dealers. Check with your financial advisor to see if you are eligible before initiating a rollover.

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