Save tax smart.
What if saving for college could actually help you save on taxes? CollegeChoice 529 offers:
- A special Indiana tax credit. Indiana taxpayers can get a state income tax credit equal to 20% of their contributions to a CollegeChoice 529 account, up to $1,500 per year ($750 for married filing separately).1
- Tax-deferred growth. Earnings grow tax deferred from federal and state taxes.
- Tax-free withdrawals. Withdrawals for qualified expenses are exempt from federal and state tax.2
- Gift-tax benefits. Contributions qualify for the federal $18,000 annual gift exclusion.
- Estate planning benefits. Reduce your personal taxable estate by making five years' worth of gifts (up to $90,000; $180,000 for married couples filing jointly) in one lump sum.3
1 This credit is subject to recapture from the account owner (not the contributor) in certain circumstances, such as rollovers to another state's 529 plan, federal nonqualified withdrawals, withdrawals used to pay elementary or secondary school tuition for a school outside of Indiana, qualified education loan repayments, or rollovers to a Roth IRA account, as described in the Disclosure Booklet.
2 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. See the Disclosure Booklet for more details on qualified expenses.
3 In the event you do not survive the five-year period, a pro-rated amount will revert back to your taxable estate.
