September marked the 20th anniversary of the creation of Indiana’s CollegeChoice 529 Savings Plan, a tax-advantaged education savings account that helps families save for college.
CollegeChoice 529 Savings Plans reward individuals and families for saving for the expenses affiliated with higher education. For example, Indiana taxpayers can get a state income-tax credit equal to 20 percent of their contributions to a CollegeChoice 529 account, up to $1,000 per year. In addition, in 2017, the General Assembly passed a bill that leveraged the 529 accounts further, establishing that the assets saved in a 529 Plan cannot affect a student’s eligibility for financial aid or other types of public assistance.
When enrolling in a 529 Plan, families can choose from a variety of accounts depending on the amount of money they want to invest and the returns they want to see. Contributions range from $10 to $298,770 per beneficiary.
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