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:


  1. Really amazing post, I am going to bookmark your post see u again thank you so much.

    529 Plan

  2. Thanks - I've been meaning to post again here about this before the end of 2011 so folks can remember to get their contributions in before the end of 2011 - thanks for the reminder!