Director briefs committee on I Deal Idaho 529 plan, employer incentives and new Roth rollover option

Dawn Hall, executive director of I Deal Idaho (the state’s 529 college savings program), updated the House Education Committee on program features, recent growth and outreach efforts.

Hall said I Deal Idaho was created by the Idaho Legislature and is governed by a state college savings board composed of constitutional officers or their designees. She described the plan as a tax‑advantaged savings vehicle for education expenses and compared it to a Roth IRA for education use.

Key features Hall highlighted include: online account management at idsaves.org and a mobile app; flexibility to pay for K–12 tuition (tuition only) and a broad set of postsecondary expenses (tuition, room and board, books, required supplies and technology) as well as career and technical programs and apprenticeships; up to $10,000 lifetime withdrawals for student loan repayment per beneficiary; and, beginning in 2024, the option to roll unused 529 funds into a Roth IRA under new federal rules.

On taxes and contributions, Hall said Idaho residents who contribute to a 529 account can take a state tax deduction; the presenter cited $6,000 for individual filers but did not specify the exact joint‑filing amount in testimony.

Hall gave program metrics: new accounts grew 14% in 2024; gifts from family and friends have increased; I Deal reported partnerships such as a College of Western Idaho (CWI) “Boost” match that will match qualified I Deal payments dollar‑for‑dollar up to $500 per semester for qualifying students, and the board is in discussions with College of Southern Idaho (CSI) for a similar program. She said employers can offer payroll direct deposit and that Idaho offers a voluntary employer tax credit for direct employer contributions to employee I Deal accounts: a 20% credit up to $500 per employee per year. In 2024, 13 employers participated and contributed roughly $203,000 to employees’ accounts, Hall said.

Hall described the 2024 Roth‑rollover flexibility as removing a barrier for families who fear unused funds if a beneficiary does not attend college. She said since the rule change there have been 81 Roth rollovers totaling approximately $497,000.

Committee members asked technical and policy questions. Representative Harris asked whether an "out of state 12.49%" figure on a slide indicated out‑of‑state contributors saving for Idaho beneficiaries or Idaho residents saving for out‑of‑state beneficiaries; Hall said it is a mixture of both. Representative Church asked whether 529 funds could be used for private K–12 tuition; Hall said yes and distinguished those private parental or family contributions from proposals that would use public dollars for private school choice. Representative Clough and other members offered anecdotal praise and asked about ease of use and transfers; Hall described account portability among beneficiaries and said staff can help districts and employers sign up for payroll direct deposit.

Why it matters: I Deal Idaho officials told the committee the program saw account and contribution growth in 2024, has employer incentives and campus partnerships underway, and added flexibility with Roth IRA rollovers and student loan repayment options. The director encouraged legislators to help spread awareness in their districts and to invite program staff to local events.

No committee vote occurred on policy changes during the briefing; Hall offered to provide additional information and to work with representatives on outreach and employer enrollment questions.