Idaho Governor Butch Otter, State Treasurer Ron Crane, and other state leaders gathered today at a Boise Albertsons to discuss the importance of saving for college, announce the formation of the Idaho College Savings Network, and officially unveil new enhancements to IDeal – Idaho College Savings Program (IDeal). During the launch event, Crane explained the importance of saving for college to a group of Idaho school children and their parents.
“It’s important that all Idaho children have the chance to get a college education. We should not allow money to be a barrier,” Governor Otter said. “My administration and our partners are offering simple and innovative ways to help Idaho families save for college, and to make the dream of college a reality.”
Last month, Upromise Investments, Inc., became the new program manager for IDeal and The Vanguard Group, Inc., became the new investment manager. As a result, there are significant enhancements for IDeal account owners, including lower costs, more investment choices, and innovative and accessible online account features. Additionally, account owners can sign up for Upromise® rewards service and earn cash rewards to help boost their college savings through everyday shopping.
"It’s no secret that a college education is costly, and I’m thrilled that we have been able to provide Idaho families with an enhanced IDeal plan that will help them save and invest for college,” said Crane. “IDeal has been redesigned to help Idaho families save for higher education expenses in a way that’s both affordable and easy.”
IDeal is Idaho’s tax-advantaged 529 college savings plan. More than 8,500 Idaho families are currently investing for over 14,500 children’s higher education through the program.
IDeal benefits include the following:
Assets grow tax-deferred, and withdrawals for qualified educational expenses are tax-free(a)
Idaho taxpayers can receive a state tax deduction of up to $4,000 per year ($8,000 if married filing jointly)(b)
Nine investment options managed by Vanguard (3 age-based options, 5 fixed asset allocation portfolios, and a money market option) with a low total annual asset-based fee of 0.75%
No annual fee for Idaho residents and beneficiaries(c)
Low $25 minimum initial and subsequent investments ($15 for payroll deduction)
24/7 online account access at www.idsaves.org, which allows account owners to open accounts, make additional contributions, perform qualified withdrawals, change investment allocations, manage bank information, and more
Ability to link an IDeal account to a Upromise rewards account(d)
Idaho families can add to their IDeal account by participating in Upromise rewards. Participants can save money for college through eligible purchases with many of America's leading grocery stores, restaurants, and retailers — including Albertsons. Joining is free.
“Now Idaho families can link their Upromise rewards account to their IDeal account, and their savings of $25 or more will automatically transfer into their college savings account on a quarterly basis. Family and friends can also help add to children’s college savings with everyday purchases,” explained Jeff Howkins, Chief Administrative Officer of Upromise Investments, Inc. “To date, more than 19,000 Idaho families are earning rewards through Upromise by shopping online or at the more than 195 partner locations throughout the state, including over 75 grocery stores.”
Crane also introduced the members of the Idaho College Savings Network, an organization of individuals, corporations, and agencies dedicated to providing Idaho families with tips on financing a college education. The Network will help parents by providing useful tips and reminders on easy ways to accumulate college savings funds. Members include: Albertsons, Boise State University, College of Idaho, Idaho State Board of Education, Idaho State Controller Donna Jones, Idaho Department of Education, Idaho Superintendent of Public Instruction Tom Luna, Merrill Lynch, St. Luke’s Hospital System, and United Way of Treasure Valley.
About Upromise Investments:
Upromise Investments, Inc., is a registered broker-dealer, member of FINRA, SIPC, and is registered with the MSRB. The company is focused solely on providing 529 plan management and marketing services to state partners and families saving for college. As of December 31, 2007, Upromise provided program management and administration services to more than 1.4 million accounts with over $18.8 billion in assets across direct, advisor, and prepaid savings plans sponsored by 11 states.
Upromise Investments' affiliate, Upromise, Inc., offers an optional free service that is designed to help families save and pay for college. Through Upromise, hundreds of America’s leading companies help families save by giving back a percentage of the qualified dollars spent with them.
About Vanguard:
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies. Vanguard manages nearly $1.3 trillion in U.S. mutual fund assets, including more than $325 billion in employer-sponsored retirement plans. Vanguard offers more than 140 funds to U.S. investors and more than 40 additional funds in foreign markets.
(a) Earnings on nonqualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
(b) You will be required to include the entire amount of non-qualified distributions or transfers to another state’s 529 plan in your Idaho taxable income.
(c) An annual account fee of $20 is charged if neither the account owner nor the beneficiary are Idaho residents.
(d) Upromise rewards is an optional service offered by Upromise, Inc., is separate from IDeal, and is not affiliated with the State of Idaho. Specific terms and conditions apply. Participating companies, contribution levels, terms and conditions subject to change without notice. Transfers from your Upromise rewards account are subject to a $25 minimum transfer amount.