Indiana college savings plan marks 25 years in business | NWI Investment

A state program that helps Hoosier families save money for their children to attend college, or another post-secondary education or job training program, is celebrating a major milestone — 25 years in business.

Indiana’s nationally recognized CollegeChoice 529 Savings Plans launched in 1997 after legislation establishing the education savings program was enacted March 21, 1996.

As of this month, some 417,000 Hoosier account holders have socked away a total of $6.8 billion in either the CollegeChoice 529 Direct Savings Plan, CollegeChoice Advisor 529 Savings Plan, or the CollegeChoice CD 529 Savings Plan.

“I am thrilled to see our program reach 25 years and to celebrate the families who have, are, and will be saving for future education,” said State Treasurer Kelly Mitchell, a Valparaiso University graduate and board chairwoman of the Indiana Education Savings Authority.

“As a fellow Hoosier and former CollegeChoice Direct Account Owner, I know the positive impact saving for education has had for my own family.”

The CollegeChoice 529 program offers families flexibility and choice when it comes to saving for education after high school.

Funds can be used at any eligible school or qualified 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 Accounts grow tax-deferred and distributions are tax-free as long as the money is withdrawn to pay for qualified education expenses, such as tuition, books, computers, equipment and fees.

“You don’t reach a milestone like this without giving credit to the people who made it happen — Hoosiers,” said Marissa Rowe, executive director of the program.

“Plain and simple, families are saving for future college and career training, and they are trusting CollegeChoice 529 to help them reach their goals. We’re honored to share in this important work and look forward to the next 25 years.”

Indiana taxpayers also may be eligible for an annual state income tax credit equal to 20% of contributions to their CollegeChoice 529 accounts, up to $1,000 each year.

A new state law, House Enrolled Act 1045, even boosts the maximum tax credit by 50% to $1,500 a year for contributions made beginning in 2023.

This is the first time the tax credit has been increased since it went into effect in 2007.

It was approved 92-0 in the House and 49-0 by the Senate. The higher credit is projected to reduce state revenue by $28.1 million a year beginning in the 2024 budget year, according to the nonpartisan Legislative Services Agency.

“We are so thankful for our incredible tax credit and low plan minimums that have made saving for what’s next possible for so many Hoosiers,” Mitchell said.

More information about Indiana’s CollegeChoice 529 program and plans is available online at: collegechoicedirect.com.