Illinois Treasurer Frerichs Celebrates Bright Start Plan Success
Illinois State Treasurer Michael Frerichs has proudly announced that the Bright Start 529 College Savings Plan has once again received a prestigious Gold rating from Morningstar. This recognition reaffirms Bright Start's position as one of the best 529 plans in the nation, assuring families that their college savings are in capable hands.
Recognition for Value in College Savings
Frerichs has voiced that being acknowledged as a strong advocate for families saving for college is an immense honor. As the Trustee and Administrator of the program, he emphasizes the dedication towards keeping fees low while ensuring a high-quality selection of investment options for families.
According to Morningstar, they independently evaluate and rank college savings plans yearly, assigning a rating based on various criteria. Bright Start has been distinguished as one of only five Gold-rated 529 plans in the country, a testament to its excellent management and performance.
What Sets Bright Start Apart
In its evaluation, Morningstar highlighted Bright Start not just for its low fees but also for implementing features that aid families effectively. The plan now includes a new investment manager, which further strengthens its commitment to investor capital stewardship.
In addition, this is not the first time Bright Start has received accolades; it marks the sixth occasion since Frerichs undertook a comprehensive revamp of the plan back in 2017. Much of this quality service is reflected in how effectively the plan has adapted to meet the needs of college savers.
Strong Oversight
Morningstar's medal ratings are based on rigorous assessments focused on key pillars such as Process, People, Parent, and Price. In their review, Bright Start received “Positive” ratings across three of these areas. The office's strong oversight under Frerichs has played a crucial role in maintaining these high standards.
Benefits of the Bright Start Plan
The Bright Start College Savings Plan is designed to support education at various institutions, including public and private schools, community colleges, and vocational training programs. Importantly, the money invested can grow without incurring federal tax when spent on qualifying educational expenses.
Frerichs has actively negotiated fee reductions—over $100 million since 2015—that directly benefit families by allowing more of their money to contribute towards savings than ever before. As a result, Bright Start is regarded as one of the most affordable plans available today, boasting over 900,000 accounts with more than $20 billion in assets.
Acknowledgment from the Industry
Under Frerichs' stewardship, Bright Start has received numerous accolades from reputable organizations including Time, Business Insider, and Savingforcollege.com. Each reaffirms its status as one of the top choices nationwide for college savings.
Importance of College Savings Accounts
Research underlines the significant impact that dedicated college savings accounts can have on a child’s likelihood to attend college, with estimates showing that children with savings are three times more likely to pursue higher education. This insight encourages parents to consider savings plans like Bright Start, which offers numerous benefits and reliable management.
To learn more about the Bright Start 529 program or open an account, parents can visit BrightStart.com. The process is straightforward, and there is no minimum deposit requirement. The program also continues under Union Bank and Trust as program manager for its Bright Directions offerings.
Frequently Asked Questions
What is the Bright Start 529 College Savings Plan?
The Bright Start 529 College Savings Plan is a flexible savings plan that helps families save for college expenses which grow tax-free when used for qualified education expenses.
How did Bright Start achieve the Morningstar Gold rating?
Morningstar rated Bright Start based on its low fees, strong investment management, and commitment to enhancing benefits for families, recognizing it as a premiere college savings option.
What are the tax benefits of the Bright Start Plan?
Families utilizing the Bright Start Plan can benefit from a significant state tax deduction, including an annual deduction of up to $20,000 for couples filing jointly.
How many accounts are held within the Bright Start Plan?
The Bright Start 529 plan currently holds over 900,000 accounts and manages more than $20 billion in assets, serving countless families across the nation.
Where can I find more information about the Bright Start Plan?
To find further details or to open an account, interested individuals can visit BrightStart.com and navigate to the college savings section for comprehensive information and resources.
