A 529 plan is an education savings plan. In addition to higher education expenses, up to $20,000 per year can be used for K–12 public, private, or religious school tuition, curriculum, materials, tutoring, educational therapies, and standardized test fees.
The Idaho College Savings Program (IDeal) is Idaho’s state-sponsored college savings plan. You can open an account with just $25. Anyone can benefit from a 529 account. There are no age or income limits for beneficiaries.
Idaho’s 529 plan offers tax-free growth and tax-free withdrawals when funds are used for qualified education expenses. Funds may be used at any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education.
Individuals can contribute up to $19,000 ($38,000 if married filing jointly) in a single year without incurring federal gift tax. The plan also offers estate planning advantages. You may reduce your taxable estate by making five years’ worth of contributions (up to $95,000; $190,000 if married filing jointly) in one lump sum. The maximum contribution limit per account is $500,000.
Idaho taxpayers who contribute to a 529 plan are eligible for a state income tax deduction of up to $6,000 ($12,000 if married filing jointly) per year from adjusted gross income.
Your employer might match your contributions.
Specifically designed for education savings, 529 plans also allow up to $35,000 to be rolled into a Roth IRA, provided the 529 account has been open for at least 15 years.
Learn more at idsaves.org.
Learn more about 529 plans:
https://www.fidelity.com/learning-center/personal-finance/college-planning/college-529-spending
United States citizens born between 2025 and 2028 will receive a $1,000 non-taxable contribution from the government into a new savings plan called the 530A (also referred to as a Trump Account) beginning July 4. Funds are invested in low-risk index funds to pursue a long-term growth strategy. Even if no additional contributions are made, assuming an annual return of 10 percent, the initial $1,000 could grow to approximately $5,560 by age 18. If allowed to grow until age 65, it could reach approximately $490,371.
Funds are taxed as ordinary income upon withdrawal and cannot be accessed before age 18. A 530A account is treated similarly to a traditional IRA and may be used for business purposes or the purchase of a first home.
The maximum annual non-deductible contribution is $5,000. If an account holder contributes $5,000 per year and earns a 10 percent annual return, the account could grow to approximately $228,000 by age 18 (with $90,000 contributed over 18 years) and more than $24 million by age 65 (with $325,000 contributed over 65 years).
To set up an account, you will need dates of birth, contact information, and Social Security numbers for both you and your child. Once established, the initial $1,000 contribution is automatically invested in low-risk index funds within the U.S. stock market. Apply by completing IRS Form 4547:
https://form.trumpaccounts.gov/