INDIANAPOLIS — Hoosier families have socked away another half-billion dollars over the past year in Indiana's tax-advantaged education savings program.
State Treasurer Kelly Mitchell this week announced that the total assets in all Indiana CollegeChoice 529 accounts now exceed $4.5 billion, up from $4 billion last July.
The new milestone means the 350,000-plus account holders across the state will pay reduced management fees during the next five years, saving a combined $3.3 million.
According to the state treasurer's office, Lake County families own 11,952 CollegeChoice accounts with more than $144 million under management.
Nearly 8,000 Porter County families have saved $96.1 million, and the 2,970 LaPorte County accounts are worth $30.9 million, records show.
"The widespread use of CollegeChoice 529 confirms our plans are more attractive and affordable than ever before," said Mitchell, a Republican and Valparaiso University graduate.
"I look forward to enhancing Indiana’s 529 program further, so it can continue to support whatever educational goals Hoosiers wish to pursue."
Investment earnings on contributions or gifts made to CollegeChoice 529 accounts are tax-free, so long as the money is withdrawn to pay for qualified higher education expenses, such as tuition, room and board, books, computers and fees, or up to $10,000 of K-12 tuition expenses each year.
Indiana taxpayers also may be eligible for an annual state income tax credit equaling 20 percent of their contributions to 529 accounts, up to a maximum of $1,000 a year.