Hoosiers are investing more than ever before in the state’s 529 college savings plan CDs, according to the Indiana treasurer of state. (Getty Images)
Hoosiers are investing more than ever before in the state’s 529 college savings plan CDs, according to the Indiana treasurer of state.
For the first time, the state’s CollegeChoice CD 529 Savings Plan has surpassed $20 million in assets, Indiana Treasurer of State Kelly Mitchell announced Tuesday.
This milestone marks the highest balance on record for the tax-advantaged savings plan.
“Our CollegeChoice CD program is an excellent option for education savers who prefer fixed-rate, low-risk investment options,” Mitchell said. “Having a fixed rate of return without the worry of market volatility makes this program a great option for late savers, adult learners, and those looking to diversify their future education savings.”
The FDIC-insured CollegeChoice 529 accounts provide greater flexibility to Hoosiers who deposit or gift contributions for later spending on education after high school. Funds can be used at any eligible school or registered apprenticeship program, both in- and out-of-state.
Accounts grow tax-deferred and distributions are tax-free as long as the money is withdrawn to pay for qualified education expenses like tuition, books, computers, equipment and fees. Effective in January 2018, up to $10,000 of K-12 tuition paid for enrollment at a public, private or religious school can additionally be considered qualified higher education expenses.
Indiana taxpayers can also qualify for an annual state income tax credit of 20% of the contributions to their CollegeChoice 529 accounts, worth up to $1,000 each year or $500 for married couples filing separately.
Accounts can be opened with as little as $10.
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