It’s never too early to start saving for college! The 529 savings plan helps put money aside each month for your student’s future education.
If you invest $100 monthly for 12 years, you will save $25,000 towards your student’s college fund!
$100 x 12 YEARS = $25,000
HOW TO SAVE FOR A
529 COLLEGE SAVINGS PLAN IN INDIANA
The Indiana College Choice 529 Direct Savings Plan only takes $10 to start and is better than keeping money in your bank account because your 529 account grows tax free.
Withdraws for education expenses are also tax-free! Additionally, Indiana taxpayers are eligible for a state income tax credit of 20% of all money contributed to an Indiana College Choice 529 Direct Savings Plan account. This translates to up to $1,000 credit per year. You can even turn that money into another Indiana College Choice 529 Direct Savings Plan deposit and another tax credit for the following year to watch it grow.
1. ADD TO YOUR COLLEGE SAVINGS PLAN WITH UPROMISE
Upromise is another step you can take to capitalize on your 529 account. It is a FREE rewards cash back program that adds your cash back to your linked college savings plan account every time you shop at select stores.
Sign up with an eligible 529 savings account, and part of what you spend on eligible purchases (like groceries, gasoline, and shopping) will automatically be added to your Indiana CollegeChoice 529 Direct Savings Plan.
2. ENTER OUR 529 SCHOLARSHIP CONTEST
A total of 10 winners will receive a deposit of an additional $5,000 in their 529 College Savings Plan to spend toward their college education. Enter the competition here and submit your entry by 11 P.M. EST on November 4, 2022.
2. LEARN MORE ABOUT INDIANA BASED SCHOLARSHIPS
Indiana also has many scholarship resources that can be accessed through filing the FAFSA. Click here for more information on how you can enter to win a scholarship to help pay for your college education.
All of the contributions made to your account grow tax-deferred and the distributions are free from federal and Indiana state taxes if used for qualified higher education expenses.
Any number of people can contribute to the same CollegeChoice 529 account, but total contributions cannot exceed $450,000 for all accounts for the same beneficiary in 529 plans sponsored by the State of Indiana.
If the beneficiary decides not to go to college, you have three options:
1. Stay invested. You can leave the money in the account in case the beneficiary decides to attend school later. There is no age limit for using the money.
2. Change the beneficiary. You can change the beneficiary on your account at any time provided that the new beneficiary is an eligible Member of the Family of the former beneficiary. Please see the Disclosure Booklet for more information on who qualifies.)
3. Withdraw the money for other uses. The earnings portion of a withdrawal not used for a beneficiary’s qualified higher education expenses is subject to federal and state income taxes and may be subject to a 10% federal penalty tax.