The Evansville Vanderburgh School Corporation today announced a new benefit for employees that will help them plan and save for college. All employees of the EVSC now have the opportunity to participate in Indiana’s CollegeChoice 529 Direct Savings Plan via an automatic payroll deduction.
CollegeChoice 529 is a tax-advantaged college savings plan that employees can use for qualified post-secondary education expenses for themselves or their dependents. Money invested in the 529 accounts can be used for tuition; room and board, books, fees, computers and other mandatory higher education expenses.
“By offering this benefit, our employees can easily and effectively save for college,” said David Smith, EVSC Superintendent. “As an educational institution, we definitely know the value of education and what it can do for students. We feel this is something we can offer our employees that will truly pay dividends for our employees, their families and our community.”
Benefits of the CollegeChoice 529 include:
- Employees can open a 529 account with little as $10 and additional contributions of at least $10 can be made at any time.
- Earnings grow tax-deferred and are free from federal income tax when used for qualified higher education expenses.
- Flexible investment options help families maximize their savings.
- Savings can be used at any eligible school around the country and abroad, including public and private, 2- and 4-year colleges, universities, graduate schools and vocational/technical schools.
- Employees can save for the education of a child, grandchild, or other beneficiary, or even for an advanced degree for themselves.
Eligible employees can contribute up to $14,000 ($28,000 for married couples) each year without incurring federal gift tax consequences. In addition, participating Indiana taxpayers, can be eligible for a state income tax credit of 20% of contributions to their CollegeChoice 529 account(s), up to $1,000 credit per year.
To enroll, EVSC employees should contact the payroll department in the Office of Business Affairs with the EVSC.
For more information on CollegeChoice 529, visit https://www.collegechoicedirect.com/.