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Qualified withdrawals from a CollegeChoice 529 Plan account are already state and federally tax-exempt. Additionally, Indiana taxpayers who contribute to a CollegeChoice 529 account become eligible for a 20% state income tax credit of up to $1,000 each year on their contributions.
Dave warns against using a 529 Plan that would freeze your options or automatically change your investments based on the age of your child. Stay away from so-called fixed or life phase plans. You want to stay in control of the mutual funds at all times.
A 529 plan is an investment account that offers tax benefits when used to pay for qualified education expenses for a designated beneficiary. You can use a 529 plan to pay for college, K-12 tuition, apprenticeship programs, and even student loan repayments.
Currently, the credit is equal to 20% of the amount contributed during the year, up to a maximum of $1,000 for single taxpayers and those married filing jointly. However, beginning on January 1, 2023, the credit is equal to 20% of the amount contributed but increases to a maximum credit of $1,500!
Is Indianas 529 savings plan right for you? Whether or not youre an Indiana resident, Indianas plan is one of the best in the nation. It gives you nine different investment options and offers a state tax credit of up to $1,000 per year to Indiana residents. You can get started saving with as little as $10.
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Contributions by Indiana taxpayers made on or after January 1, 2023, will qualify for the 20% tax credit, with a new maximum of up to $1,500 ($750 for married filing separately).
Currently, the credit is equal to 20% of the amount contributed during the year, up to a maximum of $1,000 for single taxpayers and those married filing jointly. However, beginning on January 1, 2023, the credit is equal to 20% of the amount contributed but increases to a maximum credit of $1,500!
Unlike several 529 plans, the direct-sold Utah 529 plan requires no minimum contribution. You can open an account with as little or as much as youd like. From there, you can contribute up to $540,000. This stands as one of the highest allowed 529 contributions in the country.
What happens to unused 529 funds? Your 529 account will never expire, even if your child ends up not using it. You can leave the funds in the account, allowing investments to grow tax-deferred, and use the funds down the road for a grandchild or another qualified family member.
Contributions by Indiana taxpayers made on or after January 1, 2023, will qualify for the 20% tax credit, with a new maximum of up to $1,500 ($750 for married filing separately).

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