New Tax Credit
The CollegeChoice 529 Investment Plan, governed by the Indiana Education Savings Authority (IESA) and administered by JP Morgan Funds Management, Inc., allows Hoosiers to plan for their children's or loved one's future, making contributions into an investment account for higher education expenses. And recently, Indiana enacted a new tax credit that makes the CollegeChoice Plan and even better option.
Qualified withdrawals from a CollegeChoice 529 Plan account are already state and federal tax-exempt. And, during the last legislative session, Indiana Treasurer of State and IESA Chair Tim Berry successfully lobbied for House Bill 1029, which creates a 20% tax credit up to $1,000 on Hoosiers' contributions to their CollegeChoice accounts. The credit takes effect January 1, 2007 .
Every state offers some form of 529 college savings plan, but Indiana residents are eligible for their 20% tax credit only with an Indiana CollegeChoice account. CollegeChoice accounts can be used to pay for expenses at any accredited college, university, and many vocational training programs, in Indiana or worldwide.
Additionally, Indiana residents can enroll in the plan's Age-Based investment option free of any sales commissions and authority fee. For more information about the CollegeChoice Plan, visit the web site at collegechoiceplan.com or call toll free 866-400-PLAN.
