According to the Chicago Sun-Times the Illinois Bright Start 529 Plan fees will be lowered significantly in 2007. The total fees for the program will range from 0.14% to 0.64%. This is a significant reduction from the 0.99% current fee.
In the past I recommended the Utah plan to some clients due to its low fees. In some instances the lower fees overcame the IL state income tax deduction. Now with the lower fees in the Bright Start 529 plan I strongly recommend this plan to all clients. Clients who are in the Utah plan should transfer their assets to the Bright Start 529 Plan. This is something we will be working on during the first quarter of 2007.