Opening and Maintaining an Account

Who Can Open an Account?
How Is an Account Opened?
How Many Accounts Can an Individual Open?
When Can an Account Be Opened for an Infant?
Can the Ownership of a Program Account Be Changed?
Can a Successor Be Named to Take Over Ownership of the Account Upon Death of Account Owner?
Can an Account Owner Change the Investment Election?
Where Can Additional Forms and Enrollment Kits Be Obtained?

1. Who Can Open an Account?

Individuals
UGMA/UTMA custodians
Certain legal entities
Trusts

2. How Is an Account Opened?

Complete enrollment form
Submit enrollment form to participating financial advisor

3. How Many Accounts Can an Individual Open?

No limit to the number of accounts
Maximum aggregate balance for all accounts in all Illinois Section 529 programs is $320,000 per beneficiary

4. When Can an Account Be Opened for an Infant?

No age limitations
Social security number for beneficiary must be provided within 60 days of opening an account

5. Can the Ownership of a Program Account Be Changed?

Ownership can be changed at any time
New account owner must be an individual or entity that is eligible for account ownership

6. Can a Successor Be Named to Take Over Ownership of the Account Upon Death of the Account Owner?

A successor can be designated on the enrollment form
Designated successor can be changed by completing the appropriate form from the financial advisor

7. Can an Account Owner Change the Investment Election?

Investment elections can be changed once per calendar year
Investment elections can be changed upon a change in beneficiary
Changes can be made only by the account owner

8. Where Can Additional Forms and Enrollment Kits Be Obtained?

Investment professional
Forms section of this Web site
Contact Bright Directions at 866-722-7283

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.

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. Investors should read carefully and consider the investment objectives, risks, fees, and expenses contained in the Program Disclosure Statement (issuer's official statement) before investing. The Program Disclosure Statement, which contains additional information about the plan and municipal fund securities, is available from your financial advisor.