529 Contributions for 2018

Time is running out to contribute to a 529 Plan for 2018.

A 529 plan is a great way to fund a child’s college education by contributing in the early years, and watching it grow until they graduate from high school.

The best part about contributing to a 529 is that you receive a 20% Indiana tax credit, up to $1,000 (maximum contribution applied toward tax credit is $5,000). A tax credit is better than a tax deduction since a credit comes straight off your Indiana taxes due.

We had a number of clients last year, scrambling to open and fund a 529 plan before the year end. This year, we’re reminding clients to make their contribution by mid-December.

If you’ve been meaning to open a 529 plan, you can open one online by following these straightforward instructions:

  • Go to: www.collegechoicedirect.com

  • Click on “Enroll Now”

  • New account owners enter your information

  • About your beneficiary (enter the student’s information)

    • Full name

    • Address

    • Social security number

    • Date of birth.

  • ·Choose investments (click on the information dot on the left side of each investment to view the description and then fill in the percentage you want to invest)

  • Pick a funding method

  • Choose your delivery method

  • Create username and password

  • Complete your account by clicking on SIGN

If other friends and family members want to contribute to the same 529 plan, you will need to provide them with the Ugift® code. To obtain this code, go to www.collegechoicedirect.com and log into your account. Under “features and benefits” click on Ugift and follow the instructions. Once you have the Ugift code, you can share it with others. I would also advise adding it to your passwords list.

Your friends and family will then go to www.ugift529.com  and enter the Ugift code and complete the template that pops up. They will receive their own Indiana tax credit which is 20% of their contribution up to a maximum contribution of $5,000.