The college choice 529 college savings plan is sponsored by the state of Indiana. It is designed to help parents save money for their children’s college tuition costs. The 529 plan can be a stepping stone to future possibilities and the potential of your child being able to afford college tuition. With college tuition costs at an all-time high this can be a great way to lock in your child’s future at today’s prices.
There are many other benefits to the college choice 529 savings plan. Many of these benefits can help you save thousands of dollars which can be used for additional savings. Here are some of the many benefits that you can take advantage of when you open a Indiana 529 college choice savings plan.
Indiana College Choice 529 Tax Benefits
There are many different tax benefits that are included with these outstanding plans. These benefits include tax-deferred growth. This means that your account earnings growth tax free from both the federal and state taxes. There are also special tax credits for Indiana residents. Indiana taxpayers are eligible for state income tax credit of 20% of the contributions made towards the College Choice 529 account. This is limited for up to $1000 credit per year. Gift tax benefits also exist for contributions that qualify for annual $13,000 gift exclusion. There are also state tax benefits which can reduce your personal taxable estate. These benefits can be used for up to $65,000.
Affordability and Flexible Plans
The Indiana college choice program offers many different options for investors. These programs are extremely flexible and put you in control of where your money is invested. As the account holder you can also change the beneficiary of the account once per year. Opening one of these accounts is very easy and very affordable. You can open an Indiana 529 college savings plan for as low as $25. Monthly contributions can be made in the amounts of your choosing. Investing early will help you save the money that is needed to pay for your child’s higher education. 24-hour online account access is available for your account management needs. You can also speak to an account representative to help you with your investment strategies. Your child’s current age can make a major difference on how you invest the savings account.
Creating a Plan for your 529 College Choice Account
Your financial goals may be different from your friends depending on many different factors. The way you invest your money will depend on how much time you have. You can have a portfolio that has some risk involved to try to produce higher gains. If your child is entering a “tween” age or is a teenager you’ll want to consider some more conservative investment strategies. Choosing the right portfolio for your situation can make a big difference. Age based options exist to help you determine what might be right for you and your situation.
The Indiana college savings plan is a great way to start saving for college tuition costs. Take advantage of the many benefits that exist with this amazing account. Just tax benefits can make a huge difference how much money you can afford to invest.