Opening and Maintaining an Account

How Is an Account Opened?

To open an account, an enrollment form must be completed and returned to a participating financial advisor. By completing this form, the account owner agrees to be bound by the terms and conditions of the Participation Agreement, which establishes all rights, benefits, and obligations of an account owner. If an investor wishes to make contributions for more than one beneficiary, a separate enrollment form must be completed to open a separate account for each beneficiary.

You should note, however, that any amendments to the Internal Revenue Code or Illinois laws or regulations relating to the program may automatically amend the terms of the participation agreement, and the Treasurer may amend the participation agreement at any time or for any reason by giving you written notice of such amendments.

When opening your account, you must choose from among Fee Structure A, C, E, or F. Fee Structure E is available only to account owners investing through an employer-sponsored option, and Fee Structure F is available only for those investing through a fee-only financial advisor. Contributions to an account will be invested after the program’s initial setup fee and any applicable sales charges are deducted.

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.