Contributing to an Account

How Are Contributions Made?
Can I Wire a Contribution to a Bright Directions® Account?
Can Funds Be Transferred From Another 529-Qualified Tuition Program?
Can Contributions Be Made From UGMA or UTMA Custodial Accounts?
Can Nonowners Make Contributions to an Account?
What Are the Limits on the Amount an Individual Can Contribute?
What Happens to Contributions Made Over the Maximum Amount?

1. How Are Contributions Made?

Online (click here)
Check (Deposit Coupon)
Automatic investment plan (click here)
Electronic funds transfer (click here)
Payroll deduction (check with employer for availability)
Wire transfer
Bright Directions 529 College Savings Visa® Card “Rewards”
Rollover from another 529 plan

2. Can I Wire a Contribution to a Bright Directions® Account?

3. Can Funds Be Transferred From Another 529-Qualified Tuition Program?

A Bright Directions® account can be funded by rolling over funds from another 529 plan
Rollover Form

4. Can Contributions Be Made From UGMA or UTMA Custodial Accounts?

Assets held in an UGMA or UTMA account can be utilized to fund a Bright Directions® account
Custodian must designate the associated minor as beneficiary and cannot change the beneficiary for the account
Beneficiary becomes account owner upon age of majority under the applicable UGMA or UTMA statute
Liquidation of UGMA/UTMA assets may be a taxable transaction (consult your tax advisor)

5. Can Nonowners Make Contributions to an Account?

Anyone can contribute, including the beneficiary
The Illinois state income tax deduction is available to anyone making a contribution
Account owner maintains control over all contributions

6. What Are the Limits on the Amount an Individual Can Contribute?

No minimum contribution required
No annual contribution requirements
Maximum aggregate balance for all accounts in all Illinois Section 529 programs is $320,000 per beneficiary
Once maximum is reached, no further contributions can be made for the beneficiary

7. What Happens to Contributions Made Over the Maximum Amount?

Program manager will notify the contributor
No contributions over the maximum amount will knowingly be accepted
Any contributions in excess of the maximum that are unknowingly accepted and any earnings thereon will be refunded

Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value.

The Bright Directions® College Savings Program is part of the Illinois College Savings Pool and is designed to qualify as a qualified tuition program under the provisions of Section 529 of the Internal Revenue Code. The Bright Directions® College Savings Program is sponsored by the State of Illinois and administered by the Illinois State Treasurer, as Trustee. Union Bank & Trust Company serves as Program Manager, and Northern Trust Securities, Inc., acts as Distributor.

Securities, products, and services are offered by Northern Trust Securities, Inc., member FINRA.

You should be aware that other states may sponsor their own qualified tuition plans and may offer a state tax deduction or other benefits that are limited to residents who invest in that plan. You should consult with a tax advisor about state and local taxes.

Withdrawals used to pay for qualified higher education expenses are income tax-free (Federal and State of Illinois). Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment at a qualified institution of higher education. Room and board is considered a qualified higher education expense if the student is enrolled on at least a half-time basis.

Every individual’s tax situation is different, and it is important to consult a qualified tax advisor regarding the application of the Program’s benefits to your own individual situation.

There is no guarantee that any investment portfolio will achieve its investment goals. The value of an account will go up or down based on the performance of the Portfolio in which the account is invested. When funds are withdrawn, they may have more or less than the total contributions made to the account. Past investment performance is no guarantee of future results.

Investments in the Bright Directions® College Savings Program are not guaranteed or insured by the State of Illinois, the Illinois State Treasurer, Union Bank & Trust Company, Northern Trust Securities, Inc., the Federal Deposit Insurance Corporation, or any other entity. An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities and the underlying investment companies before investing. Please contact your investment professional or call 866–722–7283 to obtain a Program Disclosure Statement (issuer’s official statement) or prospectus for any of the underlying funds. Please read the Program Disclosure Statement carefully prior to investing.