IDEAL Idaho college savings program reports account growth; staff seeks outreach partners

Dawn Hall, executive director of the IDEAL Idaho College Savings Program (Idaho's 529 plan), updated the committee on program growth, recent product features and outreach goals. Hall said the program was created by the Idaho Legislature (enabling statute cited to Title 33, Chapter 54) and noted that state-run 529 plans are governed in part by federal Internal Revenue Code Section 529.

Hall described IDEAL accounts as tax-advantaged education savings vehicles that can be used for K'12 tuition (tuition-only for K'12) and a wide range of postsecondary and career-technical expenses including room and board, books, supplies and required technology. She said Idaho taxpayers may claim an Idaho income tax deduction of up to $6,000 per individual filer or $12,000 for married joint filers for contributions to the state plan.

Program operations: Vanguard provides investment management for most investment options; Sallie Mae manages the high-yield FDIC-insured savings option. Hall highlighted a new mobile app and simplified enrollment process, and said the program increased new accounts by 14% in 2024. She reported partnerships such as a match program with the College of Western Idaho (CWI) that matches IDEAL payments dollar-for-dollar up to $500 per semester for qualifying students, and that IDEAL is discussing a similar program at College of Southern Idaho (CSI).

Hall also noted employer engagement tools: employers can set up payroll direct deposit (no employer fee) and Idaho offers a voluntary employer tax credit for direct contributions equal to 20% up to $500 per employee per year. In 2024, 13 employers contributed more than $203,000 to employee IDEAL accounts.

Hall described recent program flexibilities adopted in 2024: rollovers from 529 accounts into Roth IRAs (subject to federal rules) and a lifetime student-loan repayment benefit of up to $10,000 per beneficiary. Since the Roth-rollover option began, the program reported 81 rollovers totaling approximately $497,000.

Nut graf: IDEAL officials emphasized participation growth, employer outreach and partnerships as the program's priorities; the committee asked clarifying questions about account residency statistics, eligible uses (including private K'12 tuition) and ways to expand access in rural areas.

Q&A highlights: Representative Harris asked whether the out-of-state account share represented nonresidents saving for Idaho students or Idaho residents saving for out-of-state beneficiaries; Hall said the figure reflects both scenarios and includes grandparents or contributors living out of state. Representative Church confirmed that 529 funds may be used for private K'12 tuition and Hall clarified that the program uses private (contributor) funds; separate legislative proposals to use public money for private school choice are a different policy matter. Representative Clark described personal experience using IDEAL accounts and noted the program's low cost and flexibility.

Ending: Hall asked legislators to promote IDEAL locally and to invite program staff for community outreach. The committee did not take legislative action on the presentation.