The IDeal Way to Help Make Education Dreams a Reality

Courtesy of IDeal Idaho College Savings Program

Starting a family is exciting with so many new beginnings, hopes and dreams. We also know it comes with many new expenses like diapers and daycare. And believe it or not, 18 years with your bundle of joy is going to go by so fast. Next thing you know, they’ll be graduating high school and thinking about what comes next... That’s where IDeal comes in. 

IDeal is Idaho’s 529 Education Savings Program. We’re here to help you be prepared for that moment so your graduate can pursue whatever education path they want without taking on a lot of debt. Being a state program, IDeal can offer Idaho taxpayers tax benefits they can’t get with other savings options. Contributions to an IDeal account qualify for up to a $12,000 tax deduction1  (for couples filing jointly) or up to $6,000 for single filers, per year. Also, whatever growth you make on your money will come out state and federal tax-free as long as it’s used for a qualified education expense. 

IDeal is also flexible. Whether your child’s dreams include enrolling in an eligible college or university (in or outside Idaho), a workforce training program, or a qualified apprenticeship, IDeal can help. You can also use IDeal for K-12 tuition2 or student loan repayment if you have education debt3. 

IDeal is an investment program, but we make it easy. You don’t need in-depth experience or knowledge of investing. You can choose which investment option works for you, including low-risk FDIC insured savings as well as a time of enrollment option, managed by Vanguard, which lets savers “set it and forget it” based on when your child will need the savings. 

As with any investment, the earlier you start an account, the more time it has to potentially grow. Even small contributions can grow over time, and every dollar saved is one that doesn’t have to be borrowed. You can start an account with as little as $25. After that, you can set an automatic payroll deduction or just contribute when you can. Ask the child’s grandparents and others to help you save by contributing to the IDeal account on birthdays and holidays instead of buying toys that won’t last. If they’re an Idaho taxpayer, they can claim the tax deduction for their contributions.

A great way to increase savings over time is by marking milestones with increases in your contributions. 

For example:

• After they are potty trained, move some diaper money into the 529.

• After they are in school and no longer need daycare, move some daycare money into the 529.

• When you receive a raise, move that money into the 529.

• When kids are old enough to start working, have them put a portion of their earnings into their 529 account. It’s a great way to help them understand budgeting and saving. 

  
  

Education costs are going up. It’s important to understand the full cost of their education options. However, saving early with IDeal can help make education and training attainable for all Idahoans.

Enrolling in IDeal is easy and only takes about 15 minutes. Get started. We’re here to help!

Visit idsaves.org to learn more and start saving today. It’s as simple as that.

1 Contributions to the IDeal - Idaho College Savings Program are deductible from Idaho state income tax, subject to recapture in certain circumstances, such as a non-qualified withdrawal or a rollover to another state’s qualified tuition program in the year of the rollover and the prior tax year.

2 529 funds can be used to pay for tuition only at any K-12 public, private or religious school. Limited to $10,000 per student annually.

3 Student loan repayments: Principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary, up to $10,000 lifetime, per individual. If you make an education loan repayment from your Account, you may not also take a federal income tax deduction for any interest included in that education loan repayment.

For more information about the Idaho College Savings Program (“IDeal”), call 866-433-2533 or visit www.idsaves.org to obtain a Disclosure Statement. The Disclosure Statement discusses investment objectives, risks, charges, expenses, and other important information. Because investing in IDeal is an important decision for you and your family, you should read and consider the Disclosure Statement carefully before investing. 

Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds and protection from creditors that are only available for investments in that state’s qualified tuition program. 

IDeal is administered by the State College Savings Program Board (“Board”). Ascensus Broker Dealer Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-to-day operations, including investment advisory, recordkeeping and administrative services. The Vanguard Group, Inc. (“Vanguard”) serves as Investment Manager for IDeal. Sallie Mae Bank serves as the Savings Portfolio Manager for IDeal. IDeal's Portfolios invest in either: (i) mutual funds and a separate account offered or managed by Vanguard; or (ii) an FDIC-insured omnibus savings account held in trust by the Board at Sallie Mae Bank. Except for the Savings Portfolio, investments in IDeal are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, you could lose all or a portion of your money by investing in IDeal, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Not FDIC-Insured (except for the Savings Portfolio).

No Bank, State or Federal Guarantee.

May Lose Value.

For more business spotlights click here!