Indiana Treasurer of State Kelly Mitchell, chair of the CollegeChoice 529 Savings Plans, today reminds Hoosiers time is running out to take advantage of the state individual income tax credit for 2017 contributions to their CollegeChoice 529 accounts.
Mailed contributions must be postmarked by December 31 to qualify, and electronic contributions must also be initiated before the end of the year.
“CollegeChoice continues to offer one of the most generous 529 tax incentives in the country,” Treasurer Mitchell said. “While college savings carry the potential of a brighter future for 529 Plan beneficiaries, here in Indiana, they can also provide immediate tax relief for the loved ones investing on their behalf.”
The annual 20% credit of up to $1,000 is available to Indiana residents who file single or joint married returns. Account owners and gift contributors may each be eligible for the credit for their own contributions to any CollegeChoice 529 program – Direct, Advisor, or CD.
529 Plans like CollegeChoice are affordable, flexible, tax-advantaged education savings programs that can be used at any eligible post-secondary school. Earnings in the accounts grow tax-free as long as withdrawals are used to pay for qualified expenses like tuition and fees, books, computers, or room and board.
“The state tax credit is a powerful motivator for many to start saving,” said CollegeChoice Executive Director Troy Montigney, “but the long-term tax advantages of a CollegeChoice 529 Plan account can help students and their families reduce or eliminate their need for student loans.”
Total CollegeChoice 529 assets have increased by over $1.3 billion since Treasurer Mitchell assumed office in November 2014. During the same timeframe, more than 120,000 new accounts have been established.