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529 plans- Illinois Brightstart

By Terry Savage on January 07, 2018 | College Savings / Student Loans

Hi Terry,I’ve read some of your previous answers on Illinois Brightstart 529 plans. I’ve read there were some changes made in December of 2017. Do you still not recommend the Brightstart 529? I’m trying to decide how to open a 529 for my one year old. Is Fidelity a decent option?Thank you!

Terry Says

BrightstartSavings.com lowered its fees and changed some of its money managers, so I feel more confident in recommending it now -- even though it has not been among the top performers among 529 investment plans.  (Remember, Bright Start is the 529 investment plan -- NOT the CollegeIllinois prepaid tution plan, which has failed miserably and likely won't be able to keep its contract promises.)   The Bright Start plan results depend on your investment decisions made within the plan.  The added advantage for Illinois residents is a $10,000 deduction for a single taxpayer ($20,000 on a joint return) against Illinois state income taxes.  In the coming weeks I will be writing a complete column on the recent changes in 529 plans, but that will not change my thoughts on Bright Start.

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