Illinois First Steps:
$50 to Help You Start Saving for College

Illinois First Steps is a program designed to jump-start college savings for new parents or legal guardians of an eligible child. The key features include the following:

• The State of Illinois will provide a seed deposit of $50 for an eligible child, born or adopted on or after January 1, 2023, to a parent or legal guardian who is a resident of Illinois at the time of birth or adoption.
• Only one Illinois First Steps one-time $50 seed deposit may be claimed per eligible child.
• The parent or legal guardian of the eligible child must claim the funds for the beneficiary before the beneficiary’s 10th birthday.

It’s easy—the parent or guardian of the eligible child would follow these simple steps:

1. Open a Bright Start 529 account.
2. Name the eligible child as beneficiary of the account.
3. Complete the simple claim form included in the new account set up process.
4. That’s it! Illinois First Steps will then review and verify the information submitted to validate the claim.

Bright Start 529 account owners who meet the Illinois First Steps eligibility requirements can claim the one-time $50 seed deposit for their new child by logging in to your account.

The State of Illinois will provide a one-time seed deposit of $50 for every eligible child, born or adopted on or after January 1, 2023. The seed deposits can be claimed for all eligible children of parents residing in Illinois at the time of the child’s birth or adoption. Children born to Illinois resident parents who give birth to a child outside Illinois (such as a family residing in Metro East who elects to give birth at a hospital in Saint Louis, Missouri) will be eligible for the program. Only one Illinois First Steps $50 seed deposit may be claimed per eligible child.

Once a parent submits a claim for the seed deposit, the information will be verified against birth records and information from the Illinois Department of Public Health and Illinois Department of Revenue records. If the claim is verified, the seed deposit will be made the following quarter. The funds will be held in an omnibus account owned and administered by the Illinois State Treasurer.

Absolutely. Illinois First Steps is designed as a pledge to help you get started. After the one-time $50 seed deposit, the rest of your college savings contributions to your Bright Start 529 account are up to you. You can make contributions at any time or set up an automatic investing plan for recurring deposits or even invite family and friends to make contributions to your Bright Start 529 account.

The beneficiary will be able to spend their seed funds—including any potential net earnings and interest—on qualified higher education expenses as identified by Illinois (does not include K-12 expenses) once they complete high school or turn 18 years of age. To use the funds, they must be a resident of Illinois but may use the funds at eligible colleges, trade schools, and apprenticeship programs anywhere in the United States and at some institutions abroad.¹

Footnotes

1. ¹If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply.↩

Bright Directions account owners who meet the Illinois First Steps eligibility requirements can claim the one-time $50 seed deposit for their new child. Contact your advisor to establish an account and make your claim.

You can open a Bright Start 529 account and start saving. Any adult age 18+ with a U.S. address and a Social Security Number or Individual Taxpayer Identification Number can open a Bright Start 529 College Savings account.