529 PLANS

CollegeChoice CD 529 Savings Plan NEW! PDF ReportPRO

Two FDIC-insured options are offered in the CollegeChoice CD 529 Savings Plan: (1) fixed-rate CDs with one-year, two-year or three-year maturities, and (2) the Honors Savings Account, a high-yield savings account available from College Savings Bank, a Division of NexBank SSB. The plan ceased offering InvestorSure CDs and CollegeSure CDs to investors as of August 2, 2016 and October 21, 2016. InvestorSure CDs and CollegeSure CDS issued prior to those dates will continue to be managed and serviced by CollegeSure until their maturity dates.

Resident Rating
Non-Resident Rating

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
4.00 N/A 2.20 3.30 0.50

General

Program type:

Savings

How to enroll:

Enroll directly or through approved Indiana banks and financial advisors. Enroll Now

Initial year of operation:

2011

State agency(ies):

Indiana Education Savings Authority (IESA)

Program manager:

College Savings Bank, a Division of NexBank SSB

Program distributor:

College Savings Bank, a Division of NexBank SSB

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

Individuals of legal age, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

Fixed-rate CDs have one- or three-year maturities. The CDs are subject to early redemption penalties ranging from 1% to 10% of principal for withdrawals prior to maturity.

Contributions

Maximum contributions:

Accepts contributions until all account balances in Indiana's 529 plan for the same beneficiary reach $450,000.

Minimum contributions:

Fixed Rate CDs: With lump-sum contributions, the minimum initial contribution is $250. With the automatic investment plan, the minimum contribution level is $25 per month via electronic funds transfer, or $25 per pay period via payroll deduction. Deposits under $250 are held in an interest bearing savings account, and each time the balance reaches $250, a CD purchase is made.

Honors Savings Account: The minimum initial deposit is $250. With the automatic investment plan, the minimum contribution level is $25 per month via electronic funds transfer, or $25 per pay period via payroll deduction.

Investment Options

Age-based investment options:

None.

Static investment options:

Fixed-rate CDs earn interest at the rate posted at the time of purchase, and posted rates may change at any time. The Honors Savings Account featured an APY of 0.90% as of January 2, 2017.

Underlying investments:

FDIC-insured certificates of deposit and a high-yield savings account from College Savings Bank, a Division of NexBank SSB.

Underlying fund allocations:

PRO Premium subscription required for this data.

Portfolio Fees & Performance Lookup

PRO Premium subscription required for this data.

See Investment Options

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

None.

Expenses of the underlying investments:

Not applicable, interest rate on CD is tied to a formula. No fees associated with the Honors Savings Account.

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

A 20% tax credit on up to $5,000 per year in contributions to an Indiana 529 plan can be claimed against Indiana income tax (maximum yearly credit is $1,000). Effective January 1, 2010, rollover contributions and contributions generated through a rewards program are not eligible for the credit.

State tax recapture provisions:

An account owner must pay with the Indiana tax return a tax equal to the 20 percent of a nonqualified withdrawal from this plan, to the extent of Indiana tax credits previously claimed. Nonqualified withdrawals for this purpose include rollovers but do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship. Recapture will apply to any account terminated within 12 months from account opening date.

State tax treatment of qualified distributions:

Qualified distributions from Indiana and non-Indiana 529 plans are exempt.

State tax treatment of rollovers:

Indiana follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax credits.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

PRO Premium subscription required for this data.

Distributions & Terminations

To whom are distributions made payable:

Account owner, beneficiary or educational institution.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes and the program also offers Social Gifting.

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

PRO Premium subscription required for this data.

Contact

Website:

visit Enroll Now

Telephone:

1-888-913-2885

Open an account in just a few easy steps. Start saving today!

Enroll Now
 

Reset email successfully sent.
Please check your inbox.

Close
page loadtime mark

Advertisement


close