SPRINGFIELD, Ill. (WCIA) — Looking for a last-minute Christmas gift? The Illinois Treasurer has an idea.
State Treasurer Mike Frerichs is reminding people of the BrightStart 529 college savings program his office runs ahead of the holidays. The program creates a savings account for a beneficiary to spend on higher education later that’s exempt from taxes.
According to research from Washington University in St. Louis’ Center for Social Development, kids who have college savings accounts in their name are exponentially more likely to attend compared to children who don’t.
“This is about putting a young person on a pathway to success,” Illinois State Treasurer Mike Frerichs said. “When you open an account, you should tell that child why. Because when they know that someone believes in them, if someone has invested in them, they perform so much better in school.”
If loved ones invest in a child’s future, there are tax incentives for the investor as well. The accounts are federal tax-free and can get $10,000 in an income tax reduction (or $20,000 for married couples or people who file jointly).
To learn more about the BrightStart savings account programs, you can visit their website.