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Bright Start

By Terry Savage on October 02, 2016 |

Good evening, I saw your post on why you shouldn't use Bright Start. If i already have been using that, can i switch to a different 529 w/o taking a tax hit? Thanks!

Terry Says

Look, I have a long-time "grudge" against how Bright Start treated account holders in 2008.  That's why I wouldn't put NEW money in it.  To answer your question, yes you can roll to another plan.  Or you could open a second account at Vanguard or Fidelity using their state 529 plans.   BUT you forego the Illinois tax deduction for future contributions. According to the latest plan rankings by www.SavingforCollege.com, Illinois' direct-sold (meaning you don't go through an advisor, but directly to the www.BrightStartSavings.com website,  the Illinois plan ranks 18th for the past year, and 31st over a 10 year period.

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