IDEAL Idaho College Savings Program reports growth, new Roth rollover and employer participation incentives

Dawn Hall, executive director of IDEAL (Idaho College Savings Program), briefed the House Education Committee on program features, 2024 performance and outreach priorities. She described IDEAL as "like a Roth IRA retirement savings account, but for education," and outlined eligible uses, recent policy changes and employer incentives.

Hall told members the program was created by the Idaho Legislature and is authorized under state statute in Title 33, Chapter 54; she also cited the federal tax code provision commonly called Section 529 that governs college-savings plans. Hall said IDEAL is governed by a state board whose membership includes constitutional officers or their designees and that the program has a small local staff supported by investment management partners.

Key program points Hall highlighted included: online account opening and a mobile app; flexibility to use funds for K–12 tuition (tuition only) and for postsecondary expenses including tuition, room and board, books, required supplies and qualifying technology; student-loan repayment up to a lifetime total of $10,000 per beneficiary; the ability to roll unused funds to a Roth IRA under recent federal changes; and multiple investment options including an FDIC-insured savings option.

Hall said IDEAL added roughly 14% more new accounts in 2024 and that family and friend gifts into accounts continue to grow. She described a partnership with the College of Western Idaho (CWI) in which CWI will match payments from an IDEAL account dollar-for-dollar up to $500 per semester for qualifying students, and she said discussions were underway with the College of Southern Idaho to create a similar campus program. Hall also reported that, since the Roth rollover option began in 2024, there have been 81 rollovers totaling about $497,000.

Hall discussed employer participation: Idaho offers a voluntary tax credit to employers who contribute directly to employees' IDEAL accounts, and she said direct employer contributions qualify for a 20% tax credit up to $500 per employee per year. In 2024, 13 employers participated and contributed more than $203,000 to employees' accounts, Hall said.

Members asked questions about residency and out-of-state account activity, private-school use and the Roth rollover. Representative Harris asked whether the "out of state 12.49%" statistic meant nonresident contributors or out-of-state beneficiaries; Hall replied it was a mix (for example, an out-of-state grandparent saving for an Idaho child or an Idaho resident saving for a child attending school out of state). Representative Church confirmed that IDEAL funds can be used for private K–12 tuition but noted the difference between private use of personal funds and proposals using public dollars.

Hall asked lawmakers to help spread awareness of the program and offered to provide outreach to local communities and employers. The committee did not take formal action on IDEAL during the hearing.