Thursday, February 3, 2011
CollegeChoice 529 Savings Plan - HUGE tax incentive
While I was snowed in the past couple of days I attempted to be productive, and actually did finish my taxes (yeah!). While filing my Indiana state taxes, I learned something about investing in a Indiana CollegeChoice529 Savings Plan that I wish I'd known as soon as we moved here!
Did you know that you get 20% back (up to $1000/year) on you Indiana State taxes for your contributions to an Indiana College Choice 529 Savings Plan???? 20% !!!! That is amazing!
Let's back up - if you don't already have one, a 529 plan is a way you put money away for your kids for college - it grows TAX free, and they can use it at any school or accredited institution in the U.S. (not just Indiana). My husband and I opened up a 529 plan for each of our kids when they were born, and while we aren't able to put much in it, we're proud that we do put a little bit in each month and know that we're trying to start saving for our kids' college education. It is a piddly little amount, but it is something!!! Unfortunately, our 529 plan isn't an Indiana Plan, so we weren't able to take advantage of the 20% back, but I did find out that we can roll ours over into an Indiana plan, and I'm doing that TODAY so we can get this tax saving next year!
It truly is a win-win! You are setting money aside (as little as $25/month) for your kid(s), it is growing tax free, and you get 20% back at the end of the year (up to $1000 max) on your taxes, which means you're earning a minimum of 20% on that money for your kids education! WOW! Show me another investment where you get that kind of return and get to feel all warm & fuzzy inside for saving for your kids! :)
For more info and/or to open an account see: