Treasurer of State Kelly Mitchell Monday announced assets in the state’s tax-advantaged CollegeChoice 529 education savings plans have exceeded $5 billion, an increase of more than $2.1 billion since her tenure began in November 2014.
During the same period, over 193,000 new accounts have been established and the average account balance has risen to nearly $13,000.
“Saving in a 529 plan truly means investing in someone’s educational goals and dreams,” Treasurer Mitchell said. “While I am gratified by this milestone, our work continues to educate all Indiana residents on the benefits of CollegeChoice 529.”
CollegeChoice 529 enables account owners and gift contributors to save for a beneficiary’s education at any eligible school. Accounts can grow tax-free as long as the money is withdrawn to pay for qualified higher education expenses like tuition, room and board, books, computers and fees.
Indiana taxpayers may also be eligible for an annual state income tax credit of 20 percent of contributions to their CollegeChoice 529 accounts, worth up to $1,000 each year.
“Hoosiers have flexibility with the dollars they invest in CollegeChoice 529,” said Marissa Rowe, Executive Director of the program. “Money from a CollegeChoice account can be used for qualified expenses at 4-year institutions, as well as vocational, technical, and graduate schools – both in and out of state.”
A weekly investment of ten dollars from birth to time of enrollment in college 18 years later could lead to savings and earnings of over $15,000. Borrowing the same $15,000 in student loans could result in total repayment of over $21,500*.