STATEHOUSE (Jan. 11, 2022) – Legislation helping families save for college advanced to the Senate after clearing the Indiana House of Representatives, according to State Rep. Dave Heine (R-Fort Wayne).
Heine said increasing the state income tax credit from $1,000 to $1,500 for all 529 savings plans helps make them even more beneficial.
"These 529 plans are a great place to begin saving for your child's education," Heine said. "Making it even a little easier for parents and children to afford college is something we hope to accomplish here."
According to Heine, CollegeChoice 529 plans, also known as a qualified tuition programs, provide families with flexibility and choice when it comes to saving money for post-secondary education. Savings can be used at any eligible school or qualified apprenticeship program, both in- and out-of-state.
Heine said accounts grow tax-deferred and distributions are tax-free as long as the money is withdrawn to pay for qualified education expenses like tuition, books, computers, equipment and fees. More than 400,000 other Hoosiers already taking advantage of this opportunity, and accounts can be opened with as little as $10 a month.
Visit iga.in.gov for more information on House Bill 1045.
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State Rep. Dave Heine (R-Fort Wayne) represents House
District 85, which includes a portion of Allen County.
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