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Idaho college savings program reports account growth, employer tax-credit use and Roth rollover activity
Summary
Dawn Hall, executive director of Idaho's college savings program, told the committee the program increased new accounts in 2024, employers are using a voluntary tax credit for contributions, and account holders used a new Roth-IRA rollover option 81 times in 2024 for about $497,000 total.
Dawn Hall, executive director of the Idaho College Savings Program (IDEAL), updated the House Education Committee on the program's outreach, account growth and product features.
Hall described the program as a tax-advantaged savings vehicle for education, akin to "a Roth IRA for education," and said the program is authorized under state statute (Title 33, Chapter 54) and aligns with federal Section 529 rules for college savings accounts.
Hall said the program saw a 14 percent increase in new accounts in 2024 and reported increased gift activity from family and friends. She highlighted program flexibility: IDEAL accounts can be used for K–12 tuition (tuition only for K–12), postsecondary tuition, room and board, books, required supplies and certain apprenticeship or career-technical expenses. Hall also said account funds can be used to repay student loans (up to a lifetime limit stated in federal rules) and, since 2024, some 529 account balances have been rolled into Roth IRAs; she said there were 81 rollovers totaling about $497,000 since that change.
Employer participation was a focus. Hall said Idaho offers a voluntary employer tax credit for direct contributions to employee IDEAL accounts equal to 20 percent of the contribution, up to $500 per employee per year. She said 13 employers participated in 2024 and contributed about $203,000 to employees' accounts.
Committee members asked for clarifications. Representative Harris asked whether the program's out-of-state account percentage referred to investors or beneficiaries; Hall said it was a mixture (grandparents out of state, Idaho residents with out-of-state students, etc.). Representative Church asked about private school use; Hall said personal contributions to a 529 account can be used for private K–12 tuition, and she differentiated that from proposals under consideration that would use public funds for tuition choice.
Hall asked legislators to help promote the program in their communities and noted new tools including a mobile app and a simplified enrollment process. She said IDEAL aims to increase employer payroll direct-deposit participation because employees who use payroll direct deposit save more on average.
No committee action was taken; the presentation was informational.
