Common use of Description of the Program Clause in Contracts

Description of the Program. What Is the Program? The Program was created by the State of Illinois and is part of the Pool which is designed to qualify as a qualified tuition program under Section 529 of the Code. The primary purpose of the Program is to offer a convenient and tax- advantaged way to save for the cost of college and Federal Qualified Higher Education Expenses. Federal and Illinois income taxes on investment earnings in an Account are deferred until there is a distribution from the Account. In addition, a distribution is free from federal income tax if it is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. It is also free from Illinois income tax unless the distribution is an Illinois Nonqualified Withdrawal, in which case the amount of any deduction previously taken for Illinois income tax purposes (or a portion of such amount) is added back to Illinois taxable income. The Pool consists of the Program and the Bright Start Direct-Sold College Savings Program. This Program Disclosure Statement only pertains to Accounts in the Bright Directions Advisor- Guided 529 College Savings Program. Before investing in the Program, you should consult with your financial professional about whether an investment in the Program is appropriate in light of your overall financial goals and whether an investment is an appropriate vehicle for you to use to save for Federal Qualified Higher Education Expenses. If you decide to invest in the Program you should also consult with your financial professional about the appropriate Portfolio or Portfolios in which to invest. What Is the Legal Structure of the Program? The Illinois State Treasurer acts as Trustee. The Treasurer is responsible for the overall administration of the Program. Xxxxxxx contributed to the Program will be invested in the Trust. The Treasurer established the Trust to hold the assets of the Program, including contributions to Accounts established by Account Owners. The Treasurer has selected Union Bank & Trust Company as Program Manager to advise the Treasurer on the investment of Contributions to the Program and to provide day-to-day administrative and marketing services to the Program. The Program Manager has engaged Xxxxxxxx to advise it with respect to the structure and asset allocations of the Portfolios and the Underlying Investments the Portfolios utilize. The Program Manager has entered into a distribution agreement with Northern Trust Securities, Inc., under which they have agreed to act as Distributor for the Program. Under the distribution agreement, the Distributor will engage registered broker-dealers and financial institutions to assist in marketing the Accounts to those interested in saving for college education expenses. You will be able to open Accounts and make Contributions to Accounts through your broker or other financial advisor. How Does the Program Work? To begin saving for Federal Qualified Higher Education Expenses as described herein, you must open an Account and make an initial Contribution to your Account for a named Beneficiary. Money contributed to your Account will be invested in the Portfolio(s) you choose. When the Beneficiary of your Account incurs Federal Qualified Higher Education Expenses, you may withdraw money from your Account to pay those Federal Qualified Higher Education Expenses.

Description of the Program. What Is the Program? The Program was created by the State of Illinois and is part of the Pool which is designed to qualify as a qualified tuition program under Section 529 of the Code. The primary purpose of the Program is to offer a convenient and tax- advantaged way to save for the cost of college and Federal Qualified Higher Education Expenses. Federal and Illinois income taxes on investment earnings in an Account are deferred until there is a distribution from the Account. In addition, a distribution is free from federal income tax if it is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. It is also free from Illinois income tax unless the distribution is an Illinois Nonqualified Withdrawal, in which case the amount of any deduction previously taken for Illinois income tax purposes (or a portion of such amount) is added back to Illinois taxable income. The Pool consists of the Program and the Bright Start Direct-Sold College Savings Program. This Program Disclosure Statement only pertains to Accounts in the Bright Directions Advisor- Guided 529 College Savings Program. Before investing in the Program, you should consult with your financial professional about whether an investment in the Program is appropriate in light of your overall financial goals and whether an investment is an appropriate vehicle for you to use to save for Federal Qualified Higher Education Expenses. If you decide to invest in the Program you should also consult with your financial professional about the appropriate Portfolio or Portfolios in which to invest. What Is the Legal Structure of the Program? The Illinois State Treasurer acts as Trustee. The Treasurer is responsible for the overall administration of the Program. Xxxxxxx contributed to the Program will be invested in the Trust. The Treasurer established the Trust to hold the assets of the Program, including contributions to Accounts established by Account Owners. The Treasurer has selected Union Bank & Trust Company as Program Manager to advise the Treasurer on the investment of Contributions to the Program and to provide day-to-day administrative and marketing services to the Program. The Program Manager has engaged Xxxxxxxx Wilshire Associates, Inc. to advise it with respect to the structure and asset allocations of the Portfolios and the Underlying Investments the Portfolios utilize. The Program Manager has entered into a distribution agreement with Northern Trust Securities, Inc., under which they have agreed to act as Distributor for the Program. Under the distribution agreement, the Distributor will engage registered broker-dealers and financial institutions to assist in marketing the Accounts to those interested in saving for college education expenses. You will be able to open Accounts and make Contributions to Accounts through your broker or other financial advisor. How Does the Program Work? To begin saving for Federal Qualified Higher Education Expenses as described herein, you must open an Account and make an initial Contribution to your Account for a named Beneficiary. Money contributed to your Account will be invested in the Portfolio(s) you choose. When the Beneficiary of your Account incurs Federal Qualified Higher Education Expenses, you may withdraw money from your Account to pay those Federal Qualified Higher Education Expenses.

Description of the Program. What Is the Program? The Program was created by the State of Illinois and is part of the Pool which is designed to qualify as a qualified tuition program under Section 529 of the Code. The primary purpose of the Program is to offer a convenient and tax- advantaged way to save for the cost of college and Federal Qualified Higher Education Expenses. Federal and Illinois income taxes on investment earnings in an Account are deferred until there is a distribution from the Account. In addition, a distribution is free from federal income tax if it is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. It is also free from Illinois income tax unless the distribution is an Illinois Nonqualified Withdrawal, in which case the amount of any deduction previously taken for Illinois income tax purposes (or a portion of such amount) is added back to Illinois taxable income. The Pool consists of the Program and the Bright Start DirectDirections Advisor-Sold Guided 529 College Savings Program. This Program Disclosure Statement only pertains to Accounts in the Bright Directions Advisor- Guided 529 College Savings Program. Before investing in the Programinvesting, you should consult with your financial professional about consider whether an investment in the Program is appropriate in light of your overall financial goals and whether an investment is an appropriate vehicle for you to use to save for Federal Qualified Higher Education Expenses. If you decide to invest in the Program you should also consult with your financial professional You can obtain additional information about the appropriate Portfolio Bright Start Direct-Sold College Savings Program by visiting XxxxxxXxxxx.xxx or Portfolios in which to investcalling 000.000.0000. What Is the Legal Structure of the Program? The Illinois State Treasurer acts as Trustee. The Treasurer is responsible for the overall administration of the Program. Xxxxxxx contributed to the Program will be invested in the Trust. The Treasurer established the Trust to hold the assets of the Program, including contributions to Accounts established by Account Owners. The Treasurer has selected Union Bank & Trust Company as Program Manager to advise the Treasurer on the investment of Contributions to the Program and to provide day-to-to- day administrative and marketing services to the Program. The Program Manager has engaged Xxxxxxxx Wilshire Associates, Inc. to advise it with respect to the structure and asset allocations of the Portfolios and the Underlying Investments the Portfolios utilize. The Program Manager has entered into a distribution agreement with Northern Trust Securities, Inc., under which they have agreed to act as Distributor for the Program. Under the distribution agreement, the Distributor will engage registered broker-dealers and financial institutions to assist in marketing the Accounts to those interested in saving for college education expenses. You will be able to open Accounts and make Contributions to Accounts through your broker or other financial advisor. How Does the Program Work? To begin saving for Federal Qualified Higher Education Expenses as described herein, you must open an Account and make an initial Contribution to your Account for a named Beneficiary. Money contributed to your Account will be invested in the Portfolio(s) you choose. When the Beneficiary of your Account incurs Federal Qualified Higher Education Expenses, you may withdraw money from your Account to pay those Federal Qualified Higher Education Expenses. What Types of Expenses May Be Paid with Account Funds? Account funds may be used to pay the Federal Qualified Higher Education Expenses of the Account Beneficiary. These expenses generally include (i) tuition, fees, books, supplies, and equipment required for the Beneficiary’s enrollment or attendance at an Institution of Higher Education; (ii) subject to certain limitations, the room and board expenses of a student enrolled at least on a half-time basis; (iii) the purchase of computer or certain peripheral equipment, computer software, or Internet access and related services if they are to be used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Institution of Higher Education; and (iv) expenses for special needs services incurred in connection with enrollment or attendance at an Institution of Higher Education in the case of a special needs beneficiary. Institutions of Higher Education generally include accredited, postsecondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized postsecondary credential, including certain proprietary, post-secondary vocational, and foreign institutions. The institution must be eligible to participate in student aid programs provided by Title IV of the HEA. In addition, federal law, but not Illinois law, permits an aggregate of up to $10,000 during a taxable year from all 529 qualified tuition programs for a Beneficiary to be used for tuition or in connection with the Beneficiary’s enrollment or attendance at an elementary or secondary public, private or religious school. Such a distribution would be an Illinois Nonqualified Distribution and the amount of any deduction previously taken for Illinois income tax purposes (or a portion of such amount) would be added back to Illinois taxable income. Consult with your tax or legal advisor before making such distributions. The tax benefits afforded to 529 qualified tuition programs must be coordinated with other programs designed to provide tax benefits for meeting higher education expenses in order to avoid the duplication of such benefits. You should consult with your tax or legal advisor with respect to the various education benefits.

Description of the Program. What Is the Program? The Program was created by the State of Illinois and is part of the Pool which is designed to qualify as a qualified tuition program under Section 529 of the Code. The primary purpose of the Program is to offer a convenient and tax- advantaged way to save for the cost of college and Federal Qualified Higher Education Expenses. Federal and Illinois income taxes on investment earnings in an Account are deferred until there is a distribution from the Account. In addition, a distribution is free from federal income tax if it is used to pay the Federal Qualified Higher Education Expenses of the Beneficiary. It is also free from Illinois income tax unless the distribution is an Illinois Nonqualified Withdrawal, in which case the amount of any deduction previously taken for Illinois income tax purposes (or a portion of such amount) is added back to Illinois taxable income. The Pool consists of the Program and the Bright Start DirectDirections Advisor-Sold Guided 529 College Savings Program. This Program Disclosure Statement only pertains to Accounts in the Bright Directions Advisor- Guided 529 College Savings Program. Before investing in the Programinvesting, you should consult with your financial professional about consider whether an investment in the Program is appropriate in light of your overall financial goals and whether an investment is an appropriate vehicle for you to use to save for Federal Qualified Higher Education Expenses. If you decide to invest in the Program you should also consult with your financial professional You can obtain additional information about the appropriate Portfolio Bright Start Direct-Sold College Savings Program by visiting XxxxxxXxxxx.xxx or Portfolios in which to investcalling 000.000.0000. What Is the Legal Structure of the Program? The Illinois State Treasurer acts as Trustee. The Treasurer is responsible for the overall administration of the Program. Xxxxxxx contributed to the Program will be invested in the Trust. The Treasurer established the Trust to hold the assets of the Program, including contributions to Accounts established by Account Owners. The Treasurer has selected Union Bank & and Trust Company as Program Manager to advise the Treasurer on the investment of Contributions to the Program and to provide day-to-day administrative and marketing services to the Program. The Program Manager has engaged Xxxxxxxx to advise it with respect to the structure and asset allocations of the Portfolios and the Underlying Investments the Portfolios utilize. The Program Manager has entered into a distribution agreement with Northern Trust Securities, Inc., under which they have agreed to act as Distributor for the Program. Under the distribution agreement, the Distributor will engage registered broker-dealers and financial institutions to assist in marketing the Accounts to those interested in saving for college education expenses. You will be able to open Accounts and make Contributions to Accounts through your broker or other financial advisor. How Does the Program Work? To begin saving for Federal Qualified Higher Education Expenses as described herein, you must open an Account and make an initial Contribution to your Account for a named Beneficiary. Money contributed to your Account will be invested in the Portfolio(s) you choose. When the Beneficiary of your Account incurs Federal Qualified Higher Education Expenses, you may withdraw money from your Account to pay those Federal Qualified Higher Education Expenses. What Types of Expenses May Be Paid with Account Funds? Account funds may be used to pay the Federal Qualified Higher Education Expenses of the Account Beneficiary. These expenses generally include (i) tuition, fees, books, supplies, and equipment required for the Beneficiary’s enrollment or attendance at an Institution of Higher Education; (ii) subject to certain limitations, the room and board expenses of a student enrolled at least on a half-time basis; (iii) the purchase of computer or certain peripheral equipment, computer software, or Internet access and related services if they are to be used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Institution of Higher Education; (iv) expenses for special needs services incurred in connection with enrollment or attendance at an Institution of Higher Education in the case of a Beneficiary who has special needs; (v) expenses for fees, books, supplies, and equipment required for the participation of a Beneficiary in an Apprenticeship Program; and (vi) amounts paid as 10 principal or interest on any Qualified Education Loan of the Beneficiary or a Sibling of the Beneficiary, up to a lifetime limit of $10,000 per individual (reduced by the amount of distributions for all prior taxable years for such purposes). Institutions of Higher Education generally include accredited, postsecondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized postsecondary credential, including certain proprietary, post-secondary vocational, and foreign institutions. The institution must be eligible to participate in student aid programs provided by Title IV of the HEA. In addition, federal law, but not Illinois law, permits an aggregate of up to $10,000 during a taxable year from all 529 qualified tuition programs for a Beneficiary to be used for tuition or in connection with the Beneficiary’s enrollment or attendance at an elementary or secondary public, private or religious school. Such a distribution would be an Illinois Nonqualified Withdrawal and the amount of any deduction previously taken for Illinois income tax purposes (or a portion of such amount) would be added back to Illinois taxable income. Consult with your tax or legal advisor before making such distributions. The tax benefits afforded to 529 qualified tuition programs must be coordinated with other programs designed to provide tax benefits for meeting higher education expenses in order to avoid the duplication of such benefits. You should consult with your tax or legal advisor with respect to the various education benefits.