Monthly Features

Important year end reminder on 529 plans!

 529 College Savings Plans are an increasingly popular way to save for college. For
money deposited and then later taken out for eligible college costs, there typically
is no federal or state tax on the earnings on the account. The state of Indiana’s
CollegeChoice 529 plan is particularly popular with Indiana residents because the
annual deposit also is eligible for an additional 20% state income tax credit on up
to $5,000 deposited. In other words, you save $1,000 right off your state income
taxes due if you deposit the full $5,000. In Indiana you must make your deposit
by December 31 each year.
Also, unlike other accounts with the students’ names
on them, the 529 plan is considered a parent asset, and thus treated much more
favorably under the federal financial aid formula in most households. For more
information on Indiana’s CollegeChoice 529 plan, go to:
https://www.savingforcollege.com/529-plans/indiana 

 


Publication Date: December 2017

Return