Tens of thousands of Hoosiers have nearly $7 billion invested for post-high school education as Indiana’s CollegeChoice 529 program marks 25 years since its creation.
An upcoming change will also make it a little easier for parents to save.
Indiana State Treasurer Kelly Mitchell explained that CollegeChoice 529 plan investments are managed by the state as a way for people to save for their children’s education.
“All money that is growing, tax-deferred and all money that can be spent, tax-free, on qualified education expenses,” Mitchell said.
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Commissioner for Higher Education Teresa Lubbers said it’s important to note those qualified expenses don’t just mean tuition at a traditional, four-year college or university.
“For public and private education, for technical schools, certificates – it’s a full range of higher education opportunities,” Lubbers said.
And starting when you pay your taxes in 2024, the tax credit available for 529 plans will increase from $1,000 to $1,500 – the first increase since that credit was created in 2007.