September is College Savings Month - and if you have a child, grandchild or someone you want to help on their education journey, there are different options available that you may want to consider.
It's no secret that education costs are high. There is no way to know exactly what a four-year college degree will cost in 18 years, but it will likely be more than current costs of $11,000 (for in-state tuition) to $44,000+ per year (for private school).
Indiana529 Direct is a Section 529 plan offered by the Indiana Education Savings Authority. Named for its specific section in the U.S. tax code (just like a 401k!), it is designed to help individuals and families save for education in a tax-advantaged way.
Indiana tax payers may be eligible for a state income tax credit of 20% of contributions to an Indiana529 Direct account, up to $1,500 per year ($750 if married, filing separately). Gifters are also eligible for the Indiana state tax credit!
Indiana529 savings can be used at any eligible higher education institution in the country or abroad, including 2- and 4-year colleges, graduate schools, vocational/technical schools, and even registered apprenticeships. And it’s not just for tuition! Savings can be used for a variety of qualified education expenses, including tuition, fees, certain room & board costs, computers, and course-related software.
We'll have more blog posts throughout the month with additional information on college savings programs.
Have a question? Send us a note and we'll be in touch!