Indiana Treasurer of State Kelly Mitchell Thursday announced that assets in the state’s tax-advantaged CollegeChoice 529 Savings Plans have exceeded $4 billion. The benchmark was achieved on Wednesday, July 19.
Record contribution activity by participants and recent investment returns enabled the CollegeChoice 529 Direct and CollegeChoice Advisor 529 Plans to pass quickly from $3.5 billion in combined assets in December 2016 to their current level.
“I am thrilled by the sustained growth of CollegeChoice 529,” Treasurer Mitchell said. “As thousands of families across our state prepare to pay tuition bills for the fall semester, this milestone is a reminder that Hoosiers see the importance of saving for post-secondary education and the potential of using a tax-advantaged way to do so.”
CollegeChoice 529 Plan accounts enable their owners and gift contributors to save for a beneficiary’s education at any post-secondary school that is eligible to receive federal financial aid. The accounts grow tax-free as long as the money is withdrawn to pay for qualified expenses like tuition, room and board, books, computers and fees.
Indiana taxpayers may also be eligible for an annual 20 percent state income tax credit of up to $1,000 on contributions to their accounts.
Over $13 million of fee savings have been realized through four separate decreases during Treasurer Mitchell’s tenure. An additional fee reduction will be extended to Plan participants when assets reach $4.5 billion.
Total CollegeChoice 529 assets have increased by more than $1.1 billion since Treasurer Mitchell assumed office in November 2014. During the same timeframe, more than 106,000 new accounts have been established.
