Saving for College the Smart way - 529 Plans          

 

Idaho 529 Plan

Idaho offers one 529 college savings plan, a traditional 529 savings plan called IDeal – Idaho College Savings Program.  IDeal is a low-cost, easy way to begin saving for college.

IDeal – Idaho College Savings Program

IDeal is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct - Idaho's 529 plan can be purchased directly.

Fund Family: The Vanguard Group

Minimums: To get started you can deposit $25 or set up an automatic payroll deduction of $15.  The minimum subsequent contribution to Idaho's 529 plan is $25 unless you choose to automatically deduct from your paycheck. With this option, you can contribute $15.

Maximum Contributions:  Currently, you can contribute to your Idaho 529 plan until the aggregate account balance per beneficiary reaches $350,000.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Good news for Idaho residents -- by investing in your state's 529 plan, you can deduct up to $4,000 on your state income taxes for single filer and $8,000 for married filers.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Other benefits:  Through your IDeal Plan, you have the option to be a part of a reward program set up by Upromise. By making purchases with your card, the reward program offers a percentage of purchases that convert into rewards points, and ultimately convert into account contributions.

Residency: IDeal is open to all United States residents, not only those in Idaho.

You can learn more about the this 529 plan at the official web site.



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