Illinoisans now able to direct tax refunds automatically into Bright Start

February 6, 2008

For the first time, Illinois residents can have their income tax refund deposited automatically into
their Bright Start College Savings account when completing their state and federal tax returns,
Illinois State Treasurer Alexi Giannoulias announced today.

In previous years, Illinois taxpayers could only opt to have their tax refunds go directly into their
checking or savings account. This new option makes Illinois the first state in the nation to allow
refunds to go directly into a state-sponsored college saving account, or 529 plan.

“Bright Start works like a 401K that earns you money toward college,” Giannoulias said.
“Depositing your tax refund into your college savings account can add up and result in a significant
investment.”

If Illinois Bright Start participants deposit their state tax refund (which averages around $250) and
their federal tax refund (which averages around $2,400) annually for 10 years, they could have
approximately $51,000 more to spend on a college education. Assuming an industry standard 8
percent return on investments, the amount would include $17,000 in earnings and $34,000 in
principal.

By depositing their tax refunds into their Bright Start account, Illinois residents can then deduct
their refund the following year. In addition, the money earned by investing the deduction will also
be tax exempt.

“Bright Start contributions are always state tax deductible. By putting your tax refund into Bright
Start, you actually increase the amount of the state refund in the years to come,” Giannoulias said.

To deposit their refunds into their accounts, Bright Start participants should follow these steps
when completing their state and federal tax returns:

1) Enter routing number 101000695 in the refund portion of the form.
2) Mark the “Savings” box.
3) Enter the account number 1111514 in the appropriate box.

Visit www.brightstartsavings.com to learn more.

Bright Start is a $2.4 billion savings plan with nearly 150,000 accounts. Money in Bright Start can
be used for any student, at any accredited school located in any state. Upon withdrawing the
money for college expenses, you pay no federal or state income tax. Qualified expenses include
tuition, books, and room and board.

Administered by the Treasurer’s Office, Bright Start offers a combination of age-based and choicebased
portfolios. A child’s account can be set up with as little as $25, and friends or family
members can contribute tax free to a child’s account at any time. To learn more, visit
www.brightstartsavings.com or call (877) 432-7444.