Ask Terry Questions Brightstart program illinois

Brightstart program illinois

By Terry Savage on December 04, 2018 | College Savings / Student Loans

I am trying to enroll my 18 year old grandson before 12/27 when he turns 19. I have packet and need to check how this works. I can change recipient at any time to include other grandchildren)? Which plan or combination would you recommend — ? How long does it take to process? Do I need to get a professional to fill out the form? Thanks

Terry Says

There is absolutely no point in enrolling an 18 year old in a 529 College Savings plan.  Those plans are designed to grow money tax-free OVER THE LONG RUN for college expenses.   If the family needs money to pay for college, you can simply gift money directly to the school, without tax consequences, to help pay for tuition.

If you have younger grandchildren, by all means open an account — or several accounts in Bright Start.  You’ll get a tax deduction up to $10,000 on your return for your contribution to the plan.  And although you can change the beneficiary on the account, it might be more equitable, and equally easy, to open a plan for each grandchild separately.

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