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 $1,000 per year ($500 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 $16,000 annual gift exclusion.
- Estate planning benefits. Reduce your personal taxable estate by making five years' worth of gifts (up to $80,000; $160,000 for married couples filing jointly) in one lump sum.3
1 This credit may be subject to recapture from the account owner (not the contributor) in certain circumstances, such as a rollover to another state's qualified tuition program or a non-qualified withdrawal. Please note that, effective January 1, 2010, the Indiana state income tax credit will no longer apply to rollovers from another state's qualified tuition program or to transfers from the Upromise service into a CollegeChoice 529 account. All other contributions will continue to be eligible for the tax credit to the extent previously allowable.
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.