Illinois 529 Plan Calculator
2026Calculate 529 college savings plan growth and tax benefits in Illinois. See IL state tax deduction availability, contribution limits, and projected education savings for 2026.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Total College Cost
$176,766.87
With 4% inflation
Projected Savings
$58,861.83
Funding
33%
Funding Gap
$117,905.04
Monthly Needed to Fully Fund
$750.77
529 Plan Projection
| Years Until College | 13 years |
| Total College Cost (with inflation) | $176,766.87 |
| Current Balance | $0.00 |
| Total Contributions | $39,000.00 |
| Investment Growth | + $19,861.83 |
| Projected Savings at College | $58,861.83 |
| Funding Gap | $117,905.04 |
| Monthly Contribution Needed | $750.77 |
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How does a 529 plan work in Illinois?
A 529 plan is a state-sponsored, tax-advantaged investment account designed to fund qualified education expenses. Illinois has a flat 4.95% state income tax. Contributions to the home-state 529 plan often qualify for a state income tax deduction or credit, reducing your effective contribution cost.
Illinois detail: Illinois offers a state income tax deduction of up to $10,000 single / $20,000 joint per year for contributions to Bright Start or Bright Directions.
Earnings inside a 529 grow federally tax-free, and withdrawals used for qualified expenses (tuition, room and board, books, computers, and up to $10,000/year in K-12 tuition) are also federal tax-free. SECURE 2.0 expanded options further: unused 529 funds (held 15+ years) can be rolled to a Roth IRA for the beneficiary, subject to a $35,000 lifetime cap and annual Roth IRA contribution limits. Non-qualified withdrawals trigger ordinary income tax on earnings plus a 10% penalty.
When choosing a plan, weigh the Illinois state tax benefit against expense ratios, age-based portfolio quality, and direct-sold vs. advisor-sold fee structures. Direct-sold plans typically have the lowest fees. The calculator above projects future balance assuming compound growth and consistent contributions through the beneficiary's college years.
Illinois 529 plan: name, manager, and tax benefit
- Plan name
- Bright Start Direct-Sold College Savings Program
- Plan manager
- Union Bank & Trust
- State tax benefit
- Up to $10,000 single / $20,000 joint of contributions per year deductible (Bright Start or Bright Directions only)
Illinois offers two 529 plans: Bright Start (direct-sold, T. Rowe Price/Vanguard) and Bright Directions (advisor-sold, Union Bank & Trust). Illinois deducts up to $10,000 single / $20,000 MFJ per year for contributions to either plan — among the most generous limits in the country. 5-year carryforward of unused deductions permitted. Illinois also allows rollovers from other state plans to qualify for the deduction. Distributions for K-12 tuition (up to $10K/year) qualify federally and Illinois doesn't recapture the state deduction.
Illinois Tax & Education Facts (2026)
| State Income Tax | 4.95% (flat) |
| 529 State Tax Deduction | Check state plan details |
| State Sales Tax | 6.25% |
| Avg. Property Tax Rate | 2.07% |
Illinois 529 plan — frequently asked questions
What is Illinois's 529 plan?
Illinois has TWO 529 plans: (1) Bright Start Direct-Sold College Savings Program (Union Bank & Trust + T. Rowe Price/Vanguard). (2) Bright Directions Advisor-Sold (Union Bank & Trust). Illinois deducts up to $10,000 single / $20,000 MFJ per year — among the most generous limits in the country. 5-year carryforward of unused deductions. Distributions for K-12 tuition (up to $10K/year) qualify federally and Illinois doesn't recapture the state deduction.
How much can I deduct for IL 529 contributions?
Up to $10,000 single / $20,000 married filing jointly per year, for contributions to Bright Start, Bright Directions, or rollovers from other state plans (uniquely permitted by IL). 5-year carryforward of unused deductions. The 4.95% IL flat income tax rate means $10,000 deduction = $495 tax savings; $20,000 = $990. Among the higher per-couple deduction limits in the country.
Can I roll over to IL 529 from another state's plan and claim the deduction?
YES — uniquely. Illinois allows the deduction on rollover contributions to Bright Start or Bright Directions from other state's 529 plans. Most states limit the deduction to "new" contributions (not rollovers). This makes IL particularly attractive: you can move funds from a high-fee out-of-state plan to Bright Start and capture the Illinois deduction on the rollover amount. Rollover must be reported on the contributing-spouse's IL-1040.
Bright Start vs Bright Directions — which to choose?
Bright Start (Direct-Sold): lower fees (~0.10%-0.50%), self-directed. Best for self-investors. Bright Directions (Advisor-Sold): higher fees (1-1.5% all-in), professional advice via financial advisor. Best for those wanting hands-off management. For most IL residents comfortable with age-based portfolios, Bright Start is dramatically cheaper with comparable quality.