Tax Blog

October 21, 2019
Save Up To $1,000 in Indiana State Taxes for 2019

Contribute to your Educational Savings Plan before December 31, 2019 and receive an Indiana Tax Credit equal to 20% of your contributions up to $1,000.

      EXAMPLES:

  • Contribute $400 and reduce your Indiana tax by $80.
  • Contribute $5,000 and reduce your Indiana tax by $1,000.

It’s called CollegeChoice 529® Direct Savings Plan but the name is misleading because it can be used for K-12 Tuition as well as higher education expenses.

Tax Advantages

Your funds grow tax-deferred and distributions are free from federal and Indiana state taxes if used for qualified educational expenses which include:

  • K-12 tuition up to $10,000 per year for schools in Indiana
  • College and vocational school tuitions worldwide
  • College expenses such as: room and board, computers, books, and other supplies

The money can be paid to you, the account owner, or directly to the student or school.

You Control Your Account

It’s easy to open a CollegeChoice 529 account directly. You maintain control of the funds and save broker fees.

  • You determine when to withdraw the funds. Withdraw as soon as seven business days after your contribution or let the funds grow for years.
  • You can open an account to benefit anyone you choose as long as they have a Social Security number.
  • The account stays in your name. You decide which qualified educational costs to use the funds for.
  • You can set up an account for your own benefit, or for your child, grandchild, spouse, or any other relative.
  • You receive detailed quarterly statements and have direct online access to your account 24/7.

Flexible Contribution and Investment Options

You can open an account for as little as $10.00 and make additional investments of $10.00 or more.

You choose one or more investment options based upon your risk tolerance – an FDIC insured Savings Account, Vanguard® Bond Index Portfolio, Stable Value Portfolio, US Equity Index Portfolio, Dodge & Cox Funds® International Portfolio, Scout Investments® Active Bond Portfolio, or Western Asset® Inflation-Protected Portfolio. You can change the direction of your contributions. Federal law permits you to move the assets in your CollegeChoice 529 account to a different mix of investment options twice per calendar year.

Friends and Family Member Contributions

Friends and family can also contribute to your account. Just opt-in through your online account access area and give them the unique Ugift® code specific to your account.

Direct a Percentage of Your Everyday Purchases into Your Account

You can grow your contributions faster by joining Upromise®.

  • Simply join for free and then do what you normally do – buy groceries, shop online, book travel, dine at restaurants, and more.
  • A percentage of your eligible purchases will be deposited into your Upromise account.
  • Then just link your Upromise account with your CollegeChoice 529 account and the funds will be automatically transferred.
  • Earn even more with a Upromise Mastercard.

For more information, please contact John Striewe, President of fiscal Tax Company, by email at support@fiscaltax.com or call him directly at 317-258-3985.

 

CollegeChoice 529 is administered by the Indiana Education Savings Authority (Authority). ABD, the Program Manager, and its affiliates, have overall responsibility for the day-to-day operations, including investment advisory, recordkeeping and administrative services, and marketing. CollegeChoice 529's Portfolios invest in: (i) mutual funds; or (ii) an FDIC-insured omnibus savings account held in trust by the Authority at Sallie Mae Bank. Except for the Savings Portfolio, investments in CollegeChoice 529 are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns will vary depending upon the performance of the Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, depending on market conditions, you could lose all or a portion of your money by investing in CollegeChoice 529. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.
Upromise is an optional service offered by Upromise, Inc., that is separate from the CollegeChoice 529 Direct Savings Plan, and is not affiliated with the State of Indiana. Terms and conditions apply to the Upromise service. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Transfers from Upromise to a CollegeChoice 529 Direct Savings account are subject to a $25 minimum.
Upromise and the Upromise logo are registered service marks of Upromise, Inc. Ugift is a registered service mark of ABD.

 

 

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