College tuition in the United States has soared 93 percent since the 2005–06 academic year—far outpacing wages and inflation. For Illinois families, a 529 plan helps you keep up: your money compounds tax-free, and each contribution can shave up to $10,000 ($20,000 for joint filers) off state taxable income every year. New parents also qualify for a $50 Illinois First Steps seed deposit for children born or adopted on or after January 1, 2023. If you’re new to college saving, read our primer on understanding 529 plans first. Ready? Let’s rank the five top platforms for opening an Illinois 529 today.
Thoughtful Illinois parents review 529 college savings options online to plan for future tuition costs.
Choosing a 529 isn’t only about fee shopping; five measurable factors shape how much of your money reaches tuition.
State-tax deduction (30 percent): Illinois lets you deduct up to $10,000 on a single return or $20,000 on a joint return for contributions to an Illinois-sponsored plan, according to EducationData.org. At the flat 4.95 percent state income-tax rate set by the Illinois Department of Revenue, that’s almost five cents back on every dollar you invest.
All-in fees (25 percent): We measure the full expense ratio, including underlying fund costs, and favor plans that have lowered expenses in the past two years.
Independent plan quality (15 percent): Morningstar’s 2024 Medalist Ratings grade each plan Gold, Silver, Bronze, Neutral, or Negative. Higher medals signal stronger stewardship and more diversified portfolios.
Online and mobile ease (15 percent): Can you open the account on your phone in roughly ten minutes, set up automatic deposits, and share a gifting link with relatives? Plans that simplify these tasks earn higher marks.
Bonus features (15 percent): Extras such as Illinois’ $50 First Steps newborn deposit, ESG investment tracks, or clear guidance on 529-to-Roth rollovers under SECURE 2.0 can tilt long-term outcomes.
| Factor | Weight |
| Illinois tax deduction | 30 percent |
| Total fees | 25 percent |
| Morningstar rating | 15 percent |
| Digital experience | 15 percent |
| Perks and extras | 15 percent |
These weightings keep the focus on net dollars, not marketing copy, and drive the rankings you’ll see in the next section.
Bright Start is the only Illinois plan you can open online yourself, pairing the state tax break with industry-low costs.
Official Bright Start website, Illinois’s direct-sold 529 college savings plan that families can open online in minutes.
Opening an account takes a few minutes on the Bright Start site: enter owner and beneficiary Social Security numbers, link a bank account, and pick an investment track; there’s no application fee or minimum deposit. Total expenses now range from 0.06 to 0.77 percent, and most index tracks sit at the low end, according to SavingforCollege.com.
Morningstar’s 2024 report returned Bright Start to Gold status, one of just five Gold 529 plans nationwide, after citing lower fees and stronger oversight. The latest price cut dropped the cheapest index option to 0.06 percent, a level typically reserved for large institutional pools.
According to Bright Start 529 program data published in 2025, families have saved more than $11 billion for over 328,000 students and have already used more than $6 billion to pay qualified higher-education expenses. Those adoption numbers show how a low-cost, tax-advantaged plan can turn small monthly contributions into real tuition checks over time.
Contributions reduce Illinois taxable income by up to $10,000 for single filers or $20,000 for joint filers each year, saving roughly five percent at the 4.95 percent flat rate. Those earnings also grow free of federal and state tax as long as withdrawals cover qualified expenses—tuition, fees, books, or even certain apprenticeship costs—details spelled out in Bright Start’s understanding 529 plans guide. New parents can also collect a $50 Illinois First Steps deposit for children born or adopted on or after January 1, 2023, according to the Illinois Treasurer’s office.
The ReadySave 529 mobile app shows live balances, automates recurring transfers, and creates Ugift links so relatives can contribute.
Best fit: Illinois residents seeking maximum state tax savings, proven stewardship, and a fast, fully online sign-up.
Bright Directions is Illinois’ adviser-sold option; you open it through a financial professional rather than online self-service. That structure appeals to families who already pay an adviser and want college savings integrated with trusts, donor-advised funds, or multi-account strategies.
Bright Directions is Illinois’s adviser-sold 529 plan, opened through a financial professional rather than self-service online.
Tax benefit. Contributions qualify for the same $10,000 single or $20,000 joint Illinois income-tax deduction as Bright Start.
Costs and investments. The plan uses multiple fund families, including T. Rowe Price, Franklin Templeton, and Dodge & Cox. Total asset-based fees range from 0.30 to 1.63 percent depending on share class and portfolio, and some classes add upfront or ongoing sales charges, according to SavingforCollege.com.
Recent rating. Morningstar’s October 2024 report marked the plan Neutral; on November 12, 2025, the Illinois treasurer announced an upgrade to Bronze after fee cuts and governance changes.
Adviser tools. Recent enhancements add proposal generators and gifting calculators that blend 529 projections with retirement and charitable-giving models—features most do-it-yourself portals lack.
Best fit: high-net-worth households that value personalized advice over rock-bottom cost and want every dollar coordinated across a complex balance sheet.
If you already use Fidelity for your IRA or brokerage account, adding the U.Fund 529 is as simple as checking another box in the same dashboard. Fidelity removed all initial-deposit requirements in 2024, so you can open the account with $0 and automate contributions later, according to SavingforCollege.com.
Fidelity’s Massachusetts U.Fund 529 page lets existing investors add a college savings plan from the same familiar login.
Costs. Index age-based portfolios carry expenses of 0.11 to 0.20 percent; actively managed blends run higher, up to about 0.90 percent. These fees sit near the low end of direct-sold plans.
Quality. Morningstar’s October 29, 2024 analysis upgraded U.Fund to Gold for stronger oversight and lower pricing.
When might an Illinois saver pick an out-of-state plan?
Remember, Illinois residents forfeit the state tax deduction when choosing U.Fund, while Massachusetts savers can deduct up to $2,000 per return. On a $10,000 contribution, Illinois’ 4.95 percent tax break saves about $495, which may exceed the fee advantage unless you have hit the deduction cap.
Best fit: investors loyal to Fidelity’s platform or high-balance savers who value account consolidation after maximizing Illinois benefits.
Vanguard earned its reputation on low-cost index funds, and the Nevada-sponsored Vanguard 529 applies that same philosophy to education savings.
Vanguard’s Nevada-sponsored 529 plan offers low-cost, all-index portfolios that appeal to disciplined DIY investors.
Account minimums. The standard initial deposit is $1,000, but Vanguard lets you begin with $50 if you set up an automatic monthly or payroll contribution when you enroll, according to SavingforCollege.com.
Costs. Age-based portfolios that hold Vanguard Total Stock Market, Total Bond, and international index funds charge 0.15 to 0.20 percent in total expenses, among the lowest of any direct-sold 529 plan.
Independent rating. Morningstar’s 2024 review assigned a Bronze medal after noting fee progress at rivals and limited governance changes. The plan’s price edge, however, remains strong.
Tax trade-off for Illinois savers. Nevada has no state income tax, and Illinois offers deductions only for Bright Start or Bright Directions. At the 4.95 percent Illinois rate, a $10,000 contribution saves about $495. Vanguard’s lower fees can recoup that difference only on very large balances. Our break-even math shows Vanguard pulls ahead after about $225,000 in cumulative contributions held for fifteen years at a six-percent return. Run your own numbers before switching.
Who might choose it? Disciplined DIY investors who already maxed their Illinois deduction or who value Vanguard’s rock-bottom fees and single-login convenience. If your mantra is “keep expenses under 0.20 percent,” this plan fits the bill.
Utah’s my529 lets detail-oriented investors design a college portfolio almost from scratch. You can build a custom age-based glide path, select the mix of Vanguard, Dimensional, and PIMCO funds, and tweak it online anytime.
Utah’s my529 offers a highly customizable, low-cost 529 plan that can complement Illinois-based college savings.
Account basics. The plan charges no enrollment fee and no minimum contribution. To open an account, provide owner and beneficiary details, link funding, and choose a portfolio.
Costs. After a one-basis-point cut on August 1, 2024, the administrative fee is 0.09 percent for most options. With underlying fund costs, total expenses range 0.09 to 0.199 percent depending on your portfolio. Fees stay competitive with Vanguard while offering far more control.
Quality. Morningstar’s November 10, 2025 report again awarded my529 a Gold medal, praising governance and repeated fee cuts.
Why might an Illinoisan use it?
Best fit: investors who value customization and low costs over in-state tax perks and are comfortable with a simpler interface.
| Plan | IL tax deduction? | Total expense ratio | Minimum to open | Digital touch points | Latest Morningstar rating* | Signature perk |
| Bright Start (IL) | Yes – up to $10k / $20k | 0.06 %–0.77 % | $0 | Website + ReadySave 529 app | Gold | $50 First Steps bonus |
| Bright Directions (IL) | Yes – same limits | 0.30 %–1.63 %† | $0 (via adviser) | Adviser e-signature portal | Bronze | Multi-manager active lineup |
| MA U.Fund (Fidelity) | No | 0.11 %–0.90 % | $0 | Fidelity web + mobile app | Gold | One login with other Fidelity accounts |
| NV Vanguard 529 | No | 0.15 %–0.20 % | $1,000 (or $50 with auto-ACH) | Vanguard web portal | Bronze | All-index portfolios at very low cost |
| UT my529 | No | 0.09 %–0.199 % | $0 | my529 planning tools | Gold | Fully customizable glide paths |
*Morningstar Medalist Ratings, October 29, 2024 report.
†Bright Directions range reflects adviser-sold share classes listed by SavingforCollege.
Look first at the row that matters most to you—tax break, fee, or user experience—then return to the detailed sections for context. The best 529 is the one you’ll fund every month.
Can I open more than one 529?
Yes. Many families first contribute up to the $10,000 / $20,000 Illinois-deductible limit in Bright Start or Bright Directions, then place additional dollars in a low-fee out-of-state plan such as Vanguard or my529. Remember, only contributions to an Illinois-sponsored plan qualify for the state tax break.
What if my child gets a full scholarship or skips college?
You can change the beneficiary, keep the account for graduate school, or, thanks to SECURE 2.0, roll up to $35,000 of leftover 529 assets into the beneficiary’s Roth IRA once the account is at least fifteen years old, according to Kiplinger.
Is K-12 tuition really an option?
Federal rules let you use up to $10,000 per year for private K-12 tuition, but Illinois recaptures prior deductions on those withdrawals. Unless you are willing to repay the tax savings with interest, keep your Illinois 529 focused on post-secondary costs.
How does five-year “superfunding” work?
For 2025 you may treat a large contribution—up to $95,000 single or $190,000 joint—as if it were spread over five years, applying the annual $19,000 gift-tax exclusion each year, according to IRS instructions. Illinois still caps the immediate deduction at $10,000 / $20,000, so keep good records.
Should I automate contributions?
Drafting $100 a month can grow to roughly $29,000 over fifteen years at a six-percent annual return. Every plan in this guide supports automatic ACH transfers.
Automating even modest monthly contributions into a 529 plan can compound into a meaningful college fund over 15 years.
Do employers match 529 contributions?
Employer 529 benefits are expanding; more than thirty states, including Illinois, offer tax incentives to encourage matching, and national firms are adding the perk to attract talent, according to Forbes. Check your HR portal—any match is effectively a tax-advantaged bonus.
The strongest 529 strategy relies on three levers you control: maximize the Illinois deduction, choose low fees, and fund the account consistently, ideally on autopilot.
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