Saving for College the Smart way - 529 Plans          


Indiana 529 Plan

Indiana offers one 529 college savings plan, a traditional 529 savings plan called CollegeChoice 529 Investment Plan. This 529 plan offers good tax incentives to Indiana taxpayers.

CollegeChoice 529 Investment Plan

CollegeChoice 529 Investment Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct and Advisor – this Indiana 529 plan can be purchased directly from the state or through a financial advisor.

Fund Family: Various

Minimums: To get started you can deposit $25, and the minimum subsequent contribution is $25.

Maximum Contributions:  Currently, you can contribute to your Indiana 529 plan until your aggregate balance is $298,770.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Good news for Indiana residents - Indiana taxpayers receive a 20% tax credit on contributions, up to $1,000.  Effective January 1, 2010, the state income tax credit doesn't apply to rollovers from another state's plan or to transfers from the Upromise services into a CollegeChoice 529 account.  Residents pay no State of Indiana taxes on earnings. You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Residency: Most 529 plans are open to residents of the United States.

You can learn more about the this 529 plan at the official web site.

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