Last Updated on March 22, 2022 by Office of Indiana Treasurer of State
INDIANAPOLIS — Indiana’s nationally-recognized CollegeChoice 529 Savings Plans are celebrating 25 years of Hoosiers saving for education.
The popular program launched in 1997, following passage of legislation on March 21, 1996. Today, the program boasts $6.8 billion in assets under management in more than 417,000 accounts across three plans: CollegeChoice 529 Direct Savings Plan, CollegeChoice Advisor 529 Savings Plan, and CollegeChoice CD 529 Savings Plan.
“I am thrilled to see our program reach 25 years and to celebrate the families who have, are, and will be saving for future education. As a fellow Hoosier and former CollegeChoice Direct Account Owner, I know the positive impact saving for education has had for my own family,” said Treasurer of State Kelly Mitchell, who also serves as Board chair of the Indiana Education Saving Authority. “We are so thankful for our incredible tax credit and low plan minimums that have made saving for what’s next possible for so many Hoosiers.”
CollegeChoice 529 provides families with flexibility and choice when it comes to saving for education after high school. Funds can be used at any eligible school or qualified apprenticeship program, both in- and out-of-state. Accounts grow tax-deferred and distributions are tax-free as long as the money is withdrawn to pay for qualified education expenses like tuition, books, computers, equipment and fees.
Indiana taxpayers may also be eligible for an annual state income tax credit of 20 percent of contributions to their CollegeChoice 529 accounts, worth up to $1,000 each year ($500 for married couples filing separately). Beginning in 2024, the maximum tax credit increases by 50 percent, from $1,000 to $1,500, for contributions made in 2023. This is the first time the tax credit has increased since it went into effect in 2007.
“You don’t reach a milestone like this without giving credit to the people who made it happen – Hoosiers,” said Marissa Rowe, executive director of the program. “Plain and simple, families are saving for future college and career training, and they are trusting CollegeChoice 529 to help them reach their goals. We’re honored to share in this important work and look forward to the next 25 years”
For more information, visit www.collegechoicedirect.com/plans.
SOURCE: News release from Office of Indiana Treasurer of State