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Indiana529 Direct Savings Plan

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Best IN resident benefits

IN resident benefits

In September 2008, Upromise Investments, Inc., which was acquired by Ascensus College Savings in 2013, took over the management of the Indiana 529 Direct Savings Plan from JPMorgan, and it now features a year of enrollment option, eight 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.

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Indiana529 Direct Savings PlanHonors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

1997, but substantially changed in 2008

State agency

Indiana Education Savings Authority (IESA)

Tax deduction

For single filers: 20% amounting to up to $1,500/yr

For joint filers: 20% amounting to up to $1,500/yr

Program manager

Ascensus Government Savings

Program distributor

Ascensus College Savings

Manager contract term

MORE INFORMATION

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?

  • IN residents can claim a tax deduction for contributions to a IN 529 plan.

    Up to $1,500/yr ($1,500/yr for single filers) per year are eligible.

  • 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.

Indiana529 Direct Savings Plan
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Contributions

Maximum contributions:

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

Minimum contributions:

$10

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

Investment Options

Investors in Indiana529 Direct Savings Plan can select from the following investment options. Click on a portfolio name for more information.

The Year of Enrollment Option contains 8 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.
PortfolioE.R. % Equity1yr performance
2027 Enrollment Portfolio0.2%22.5%4.94%
2030 Enrollment Portfolio0.2%37.51%5.63%
2033 Enrollment Portfolio0.2%53.4%6.01%
2036 Enrollment Portfolio0.2%68.65%6.44%
College Portfolio0.19%10%4.04%
2039 Enrollment Portfolio0.2%80.37%6.65%
2042 Enrollment Portfolio0.2%90%6.88%

Age-based/Enrollment Year investment options:

The Year of Enrollment Option contains 8 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.

Static investment options:

Select among 8 individual fund options using various investment managers plus an FDIC-insured Savings Portfolio.

Underlying investments:

Year of Enrollment Portfolios: Vanguard, Schwab, iShares, BlackRock, money market fund and savings account Individual Portfolios: Funds from Vanguard, JP Morgan, Carillon Tower Advisors, DFA, SSGA, and AQR The Savings Portfolio invests in the NexBank High-Yield Savings account.

Underlying fund allocations:

Portfolio Fees & Performance Lookup

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:

0.24% in the Year of Enrollment Option; 0.14% in the Individual Portfolios and Savings Portfolio.

Expenses of the underlying investments:

Ranges from 0.03% to 0.04% in the Year of Enrollment Option and from 0.02% to 0.50% in the Individual Portfolios (portfolio weighted average). None in the Savings Portfolio.

Total asset-based expense ratio:

0.14% - 0.64%

Taxes and other Benefits

Tax deduction for single filers:

20% amounting to up to $1,500/yr

Tax deduction for joint filers:

20% amounting to up to $1,500/yr

Program match on contributions:

None.

State tax deduction or credit for contributions:

Indiana taxpayers are eligible for a state income tax credit of 20% of contributions to an Indiana 529 Plan, up to $1,500 credit per year ($750 for married couples filing separately). Effective January 1, 2024, rollover contributions and contributions generated through a rewards program are not eligible for the credit. Effective January 1, 2023, the definition of an Indiana taxpayer was revised to include married individuals filing separately. The maximum annual credit allowed for a married taxpayer filing separately is $750. Indiana residents may elect to treat contributions made through the deadline (excluding extensions) for filing an individual Indiana state income tax return (generally April 15) as having been made in the prior year in order to claim the allowable annual credit on their Indiana state tax return for the prior year. Contributions default to the current contribution year; if you wish to have a contribution made before Tax Day count toward the prior calendar year, include a letter with a mailed check or contact the plan administrator to make the request.

Calculate your Indiana 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a Indiana 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

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, distributions for K-12 tuition for a school outside of Indiana, education loan repayments (beginning 1/1/2020). Nonqualified withdrawals 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 definition of qualified education expenses includes expenses for higher education and apprenticeship programs, 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. Education loan repayments are not considered as a qualified education expense.

For Indiana state income tax purposes, a withdrawal for payment of K-12 Tuition Expenses at a K-12 school which is not located in Indiana will be treated as a non-qualified withdrawal and taxed as income to the extent previously deducted as a contribution to the Indiana 529 Direct Savings Plan. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

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

Is there a rewards program or outside scholarship program that works with this 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.

Statutory protection of an account from creditors:

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.

Indiana529 Direct Savings Plan
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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:

Contact

Website:

http://www.indiana529direct.com/

Telephone:

1-866-485-9415

Social Media

https://www.facebook.com/indiana529/

Start saving for your child's future today

Complete the online application and make your first deposit

Indiana529 Direct Savings Plan
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Enroll Now Count79,680 Clicked to Enroll

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