May 29th is College Savings Day. The goal of College Savings Day is to encourage students and their families to open or add to an Indiana College Choice 529 Plan, which is one of the best tools available to help with paying for college. These plans were established to help people save money for students' post-secondary or higher education that can be used at eligible schools accross the country.
College Choice 529 plans are a great tax-advantaged way to save for current or future education expenses. The plan has many attractive features and benefits:
* Tax advantages: Tax-deferred investment growth and federal tax-free withdrawals when used for qualified higher educational expenses
* An Indiana resident who contributes may be eligible for a 20% state tax credit, up to a maximum of $1000 per year per taxpayer
* Anyone (including grandparents, other family members and friends) may contribute to the plan
* No income limit for participation
* Investing is affordable. Each account holder can decide when and how much to invest. You can establish an account with as little as $25 and make monthly investments of $25 or more. More than one person can contribute to the same account
* The assets in your account can be used toward the costs of nearly any public or private, 2-year or 4-year college
* Contributions can be made in various ways, including payroll direct deposit, electronic funds transfer, an automatic investment plan and via check
For more information on Indiana's 529 advisor-sold program, the CollegeChoice Advisor 529 Savings Plan, click here.