General InformationDownload PDF Report

CollegeChoice 529 Direct Savings Plan logo

CollegeChoice 529 Direct Savings Plan

In September 2008, Upromise Investments, Inc., which was acquired by Ascensus College Savings in 2013, took over the management of the Indiana CollegeChoice 529 Direct Savings Plan from JPMorgan, and it now features an age-based option using Vanguard index and Loomis Sayles funds, seven individual portfolios using a variety of investment managers, and an FDIC-insured savings account from NexBank. Accounts can be linked to the Upromise Rewards service.

Our Ratingx

4.5 of 5

Fee Scorex

3.5 of 5

Performancex

2.5 of 5

  • Program typeSavings
  • Inception1997, but substantially changed in 2008
  • State agency
    Indiana Education Savings Authority (IESA)
  • Tax deduction
    For single filers, 20% on up to $5,000/yr
    For joint filers, 20% on up to $5,000/yr
  • Program Manager
    Ascensus College Savings
  • Program distributor
    Ascensus College Savings
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for IN residents

This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.

Our overall rating for non-residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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.


3.91of 5

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens at least 18 years old, emancipated minors, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

For Indiana taxpayers claiming a state tax credit on contributions, the account must remain open for at least one year to avoid recapture of the tax credit on distributions used to pay qualified education expenses.

Did you know?

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

CollegeChoice 529 Direct Savings Plan logo

Contributions

Maximum contributions:

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

Minimum contributions:

$10

Investment Options

Age-based investment options:

The Year of Enrollment Option contains 7 portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary's anticipated year of enrollment. Target allocations for the Year of Enrollment Portfolios evolve to more conservative investments as the beneficiary approaches college age.View more age-based investment options

Static investment options:

Select among 7 options using various investment managers: Active Bond, International, Bond Index, Stable Value, U.S. Equity Index, and Inflation-Protected, plus an FDIC-insured Savings Portfolio.View more static investment options

Underlying investments:

Age-Based Option: Vanguard index funds, Loomis Sayles, and money market fund
Individual Portfolios: Mutual funds from Dodge & Cox, Carillon Reams, Vanguard, and Western Asset.
The Savings Portfolio invests in the NexBank High-Yield Savings account.
View a full list of this plan's investment options

Underlying fund allocations:

UNLOCK PRO

Portfolio Fees & Performance Lookup

UNLOCK PRO

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

$20 annually, waived for Indiana residents or beneficiaries and for accounts with $25,000.

Program management fees:

0.33% in the Year of Enrollment Option; 0.18% in the Individual Portfolios and Savings Portfolio.

Expenses of the underlying investments:

Ranges from 0.06% to 0.12% in the Year of Enrollment Option and from 0.02% to 0.64% in the Individual Portfolios (portfolio weighted average). None in the Savings Portfolio.

Total asset-based expense ratio:

0.18% - 0.82%

Taxes and other Benefits

  • For single filers, 20% on up to $5,000/yr
  • For joint filers, 20% on up to $5,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

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 lesser of 20 percent of a nonqualified withdrawal from this plan, or the excess of (a) the total amount of all Indiana state income tax credits claimed by any contributor to the account for all taxable years beginning on or after January 1, 2007 over (b) the total amount of any repayments made for all taxable years beginning on or after January 1, 2008. 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 definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

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?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

UNLOCK PRO

Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

CollegeChoice 529 Direct Savings Plan logo

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

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

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:

UNLOCK PRO

Contact

Telephone:

1-866-485-9415

Facebook

https://www.facebook.com/collegechoice529/

Start saving for your child's future today


Step 1

Click the blue Enroll Now button to the right

Step 2

Complete the online application and make your first deposit

CollegeChoice 529 Direct Savings Plan logo