Back to school … time to think about a 529 college savings plan. With college expenses skyrocketing, it is never too early to start saving. Anyone — including friends, grandparents, and other family members — may contribute to the plan. All that is needed is a valid Social Security number or Taxpayer Identification number.
Features and benefits of 529 college savings plans vary by state. Indiana College Choice Advisor 529 Plan has some added tax incentives:
• Your Plan earnings grow free from federal and state income taxes.
• Indiana taxpayers are eligible for a state income tax credit of 20% of contributions to a College Choice Advisor account, up to $1,000 credit per year.
• Distributions for qualified higher-education expenses are free from federal and Indiana state income tax.
• You may contribute as much as $14,000 per beneficiary each year ($28,000 for married couples filing jointly) without incurring gift-tax consequences.
It is easy to set up a plan to fit your budget, call if you have additional questions regarding a 529 Savings plan.
State specific 529 plans should be compared to your own state’s qualified tuition program and any state tax or other advantages it may provide.
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