CollegeChoice 529 Direct Savings Plan
How You Can Pay Less Indiana Taxes?
- Contribute to a CollegeChoice 529 Direct Savings Plan and increase your Indiana refund up to $1,000
- Make 20% on your investment with an Indiana tax credit
- Use the money to pay education expenses for College, Vocational School, and K-12
- Withdraw the money in as few as seven (7) business days and still receive the full credit
Frequently Asked Questions
- How can I use the proceeds?
- You have flexibility in using the funds
- K-12 tuition up to $10,000 per year
- Qualified expenses include: tuition, room and board, computers, books, and other supplies
- College and vocational schools located any place in the world
- Money can be paid to you, the account owner, the student, or directly to the school
- Can I contribute if I live in a state other than Indiana?
- Only Indiana taxpayers can get a state income tax credit equal to 20% of their contributions to a CollegeChoice 529 account up to a $1,000.
- Money must be contributed by December 31st to qualify for the credit that tax year.
- What is the Federal income tax impact?
- Earnings and withdrawals are FREE from both federal and state taxes if used for qualified education expenses. The tax advantages will make your dollars grow faster.
- Who controls my account?
- You, the account owner, controls the account – not the student.
- You control the beneficiaries and all the money in the account.
- You determine when to withdraw the money and who it will be paid to.
- You can change the beneficiaries anytime you want.
- Who are qualified family members?
- Children, Grandchildren, Great Grandchildren, Spouse, Yourself, Brothers, Sisters, Nieces, Nephews, and Stepchildren or a descendant of them
- Can I contribute to someone else’s 529 plan?
- Yes. Any Indiana taxpayer who makes a contribution to an Indiana CollegeChoice 529 plan is eligible for the tax credit.
- What are my investment choices?
- Money market FDIC insured account through Nex Bank®
- Vanguard® funds
- Dodge & Cox® funds
- Western Asset® – an inflation protected portfolio
- Scout Investments® – active bond portfolio
- Can I make an investment change in my account?
- Yes. You have online account access 24/7 and can change the direction of your future contributions at any time. Federal law permits you to move the assets in your CollegeChoice 529 account to a different mix of investment options twice per calendar year.
- What is the impact on federal financial aid?
- Generally, the account is treated as belonging to the account owner, not the student, so there is less of an impact on federal financial aid. Only 3 – 6% of the 529’s total account value will be counted toward your Estimated Family Contribution (EFC), as determined from FAFSA.
- Can I start small and contribute over time?
- Yes. You can open an account for as little as $10.00 and make additional investments of $10.00 or more.
- There is a College Savings Planner that can help you determine your contribution strategy.
- How can I participate in the plan?
- Online enrollment
- Paper-based enrollment
- How can I make contributions to my account?
- Rollover from another 529 plan
- Electronic funds transfer (opening contribution of $10 or more) from your checking or savings account
- Automatic investment plan (contribution of $10 or more) with scheduled contributions in set amounts from your checking or savings account
- Payroll deduction through participating employers
- Check made payable to CollegeChoice 529
- Rollover from an Education Savings Account or a qualified Series EE or Series I U.S. Savings Bond
- Transfer from an UGMA/UTMA account
- Ugift® and Upromise®
- Are investments in CollegeChoice 529 guaranteed?
- No. CollegeChoice 529 is not insured or guaranteed with the exception of the Savings Portfolio which is insured by the FDIC. Investment returns will vary depending upon the performance of the portfolios you choose. Depending on market conditions, you could lose all or a portion of your investment.
For more information or help, visit collegechoicedirect.com or call them at 866-485-9415, Monday – Friday, 8 a.m. – 8 p.m. ET.
CollegeChoice 529 is administered by the Indiana Education Savings Authority (Authority). ABD, the Program Manager, and its affiliates, have overall responsibility for the day-to-day operations, including investment advisory, recordkeeping and administrative services, and marketing. CollegeChoice 529’s Portfolios invest in: (i) mutual funds; or (ii) an FDIC-insured omnibus savings account held in trust by the Authority at Sallie Mae Bank. Except for the Savings Portfolio, investments in CollegeChoice 529 are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns will vary depending upon the performance of the Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, depending on market conditions, you could lose all or a portion of your money by investing in CollegeChoice 529. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.
Upromise is an optional service offered by Upromise, Inc., that is separate from the CollegeChoice 529 Direct Savings Plan, and is not affiliated with the State of Indiana. Terms and conditions apply to the Upromise service. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Transfers from Upromise to a CollegeChoice 529 Direct Savings account are subject to a $25 minimum.
Upromise and the Upromise logo are registered service marks of Upromise, Inc. Ugift is a registered service mark of ABD.