Indiana College Savings Plan Celebrates 25 Years in Business | State
A state program that helps Hoosier families save money so their children can attend college, or another post-secondary education or job training program, celebrates a milestone – 25 years in business.
Indiana’s nationally recognized CollegeChoice 529 savings plans were launched in 1997 after the law establishing the college savings program was enacted on March 21, 1996.
As of this month, some 417,000 Hoosier account holders have accumulated a total of $6.8 billion through the CollegeChoice 529 Direct Savings Plan, CollegeChoice Advisor 529 Savings Plan, or CollegeChoice 529 Savings Plan. College Choice CD 529.
“I’m thrilled to see our program reach 25 years and celebrate the families who have, are saving, and will save for their future education,” said State Treasurer Kelly Mitchell, a graduate of Valparaiso University and chair of the board of directors. administration of the Indiana Education Savings Authority.
“As a fellow Hoosier and former CollegeChoice Direct account holder, I know the positive impact saving for education has had on my own family.”
The CollegeChoice 529 program offers families 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, in and out of state. Accounts grow tax-deferred and distributions are tax-free as long as money is withdrawn to pay for qualified education expenses, such as tuition, books, computers, equipment, and expenses.
“You don’t reach a milestone like this without giving credit to the people who made it possible – Hoosiers,” said Marissa Rowe, the program’s executive director.
“Clearly and simply, families are saving for their future college and career educations, and they trust CollegeChoice 529 to help them achieve their goals. We are honored to be a part of this important work and look forward to the next 25 years.”
Indiana taxpayers may also be eligible for an annual state tax credit equal to 20% of contributions to their CollegeChoice 529 accounts, up to $1,000 per year.
A new state law, House Enrolled Act 1045, even increases the maximum tax credit by 50% to $1,500 per year for contributions made starting in 2023.
This is the first time the tax credit has been increased since it came into effect in 2007.
It was approved 92-0 in the House and 49-0 in the Senate. The higher appropriation is expected to reduce state revenue by $28.1 million annually beginning in the 2024 budget year, according to the nonpartisan Legislative Services Agency.
“We are so grateful for our incredible tax credit and low diet minimums that have saved so many Hoosiers for the next step,” Mitchell said.
More information about Indiana’s CollegeChoice 529 program and plans is available online at: collegechoicedirect.com.