CollegeChoice 529 Savings Surpass $5 Billion

INDIANAPOLIS (November 18, 2019) – Treasurer of State Kelly Mitchell today 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 Accounts can grow tax-free as long as the money is withdrawn to pay for qualified higher education expenses like tuition, room and board, books, computers and fees.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*.

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ABOUT COLLEGECHOICE 529 

CollegeChoice 529 is Indiana’s tax-advantaged 529 education savings program and is offered and administered by the Indiana Education Savings Authority, a state government quasi-agency and board chaired by Treasurer of State Kelly Mitchell. CollegeChoice 529 includes the Direct, Advisor and CD Plans and has more than $5 billion in assets under management in over 375,000 accounts as of November 15, 2019. To learn more or enroll in the Direct Plan, call 1.866.485.9415 or visit www.collegechoicedirect.com to obtain a Disclosure Booklet, which includes information on investment objectives, risks, charges and expenses that should be read and considered carefully before investing.

* This example is hypothetical and for illustrative purposes only. It does not represent an actual investment in a particular 529 plan, nor does it reflect the effect of fees or expenses. It assumes the account earns a 5% annual return and that no withdrawals were made during the period shown. The final account balance does not reflect any taxes or penalties that might be due upon distribution of a non-qualified withdrawal. Your actual investment return could be higher or lower. The loan example is hypothetical and based on a 10-year term with a 7.6% interest rate.

For more information,visit www.in.gov/tos

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