If you have kids, no matter the age, you’ve probably at one point at least thought about how to pay for college someday. If you don’t already have a plan in place, or if you have a plan, but you’d like additional suggestions, we have a couple ideas to help you get started.
529 Plans are a great way to save for your child’s future education. A 529 plan is operated by a state or educational institution and is designed to help families put aside money for college costs. As long as the plan meets a few specific requirements, there can be special tax benefits for the participant as well. Investments grow tax-deferred and distributions to pay for education costs come out federally tax-free.* However, earnings on non-qualified withdrawals may be subject to certain penalties.
If you are investing for college on your own, Indiana offers the College Choice 529 plan. There is a range of investment options available as well as online account access. Plus, with this plan, Indiana taxpayers are eligible for a state income tax credit of 20% of contributions to their CollegeChoice 529 account, up to a $1,000 credit per year.** If you would like more information or would like to enroll, click here.
FORUM Sprout Account
To supplement your college savings, a FORUM Credit Union Sprout Account is a great option. This account can be opened any time between birth and age 18. There is no minimum deposit required to open the account and contributions can be made by anyone. Plus, the account earns a competitive dividend rate and FORUM matches 10% of deposited funds per calendar year!*** In addition, if your child chooses a different opportunity in lieu of college, there is no penalty if the money is not used on education costs. For more information or to open an account now, click here.
No matter what age your child is, it’s never too late to start saving for their future!
*The above is not intended to be tax advice, was not written by a tax professional and is informational only. Please consult a tax advisor for your specific situation.
***Maximum match $100 per calendar year. Match based on four tier levels