Checklist for the CollegeChoice 529 Direct Savings Plan

The Savingforcollege.com 529 Selection Checklist is a simple tool designed to assist you in your research and selection of a 529 college savings plan. Before investing in a 529 plan, be sure to read the official program offering materials.

Steps:

1. Use a separate checklist for each 529 plan you are considering.
2. Use the "Notes" line to add any notes or thoughts you feel are relevant to that particular question. Information about the 529 plan being evaluated can be gathered from its official program disclosures, the plan web site, and third-party sources like Savingforcollege.com.
3. Use the "Acceptable, Unacceptable, or Not Important" checkboxes to indicate your conclusions as to how well the 529 plan you are evaluating meets the various criteria. Some criteria will not make any difference in your selection of your plan and should be noted as Not Important. In lieu of simply indicating acceptable or unacceptable you may want to develop a rating scale, e.g. 1 through 5.
4. Compare the checklists for the various 529 plans being considered and use the results to help you select the appropriate 529 plan.

Enrollment Issues:

Who is eligible to use this particular 529 plan?

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

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How do I enroll: through a financial advisor (generally higher expense) or directly with the program (generally lower expenses)?

Enroll directly with the program.

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What, if any, age or time limits are imposed by this 529 plan that may restrict how long I can hold the plan?

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.

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Can I complete the enrollment process for this 529 plan online (including funding the account)?

Yes

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Can I meet the plan's minimum contribution requirements either with a lump-sum contribution or by signing up for automatic contributions?

$10

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Is the plan's maximum contribution limit high enough to accommodate my college funding desires?

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

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Will this 529 plan allow my other relatives and friends to make contributions directly to my account?

Yes., Through Ugift, family members and friends may be invited to give the gift of college savings via e-mail invitation or gift contribution coupons to make contributions to the account. Gift contributors may also set up recurring contributions.

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Program benefits:

If I live in the state offering this 529 plan, what are the state income tax deductions or credits I can claim for my contributions to it? (Note: If you live in Arizona, Kansas, Missouri, Maine, and Pennsylvania you do not have to use the in-state 529 plan to claim a deduction).

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.

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If I live in the state offering this 529 plan, what matching contributions might I be eligible for?

None.

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If the state offering this 529 plan administers its own student financial aid programs, will my account in this plan be excluded for purposes of determining eligibility?

Yes

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If I prefer an investment that automatically changes to a more conservative asset mix as my child approaches college age, what "age-based" options are offered in this 529 plan?

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.

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If I prefer one or more investments that do not adjust over time, what "static" options are offered in this 529 plan?

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

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Which mutual fund families, or other investment managers, are utilized in this 529 plan? Do the investment options consist of a single fund family or a mix of fund families?

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.

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Notes: _______________________________________________________________________

Does my preferred investment option in this program include foreign stocks, real estate, inflation-adjusted securities, or other sectors that I feel are desirable?

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.

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Notes: _______________________________________________________________________

Which type of mutual funds does my preferred investment option use: actively managed funds or passively managed index funds?

Mostly index funds in the Year of Enrollment Option; both active and passive index funds in the Individual Portfolios.

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What is my assessment of the quality of the particular investment options in this 529 plan?

Mostly index funds in the Year of Enrollment Option; both active and passive index funds in the Individual Portfolios.

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Notes: _______________________________________________________________________

How acceptable is the range of investment options in this 529 plan in the event I wish to change investment options in the future?

Mostly index funds in the Year of Enrollment Option; both active and passive index funds in the Individual Portfolios.

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Notes: _______________________________________________________________________

Fees and expenses:

How much is the enrollment fee in this 529 plan? Do I qualify for a waiver?

None.

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Notes: _______________________________________________________________________

How much is the account maintenance fee in this 529 plan? Do I qualify for a waiver?

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

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Notes: _______________________________________________________________________

What is the total asset-based expense ratio (or range of ratios) for the investment options in this plan?

0.14% - 0.64%

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Notes: _______________________________________________________________________

How do the fees and expenses of this program compare to other 529 plans that offer investment options very similar to my preferred investment option in this program?

Similar investments may be found in other Upromise-managed 529 plans at slightly lower cost.

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Notes: _______________________________________________________________________

Other issues:

What are the special creditor protections for this 529 plan under the laws of the sponsoring state?

None.

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Notes: _______________________________________________________________________

Is this 529 plan linked into my favorite rewards service (e.g. Fidelity 529 College Rewards Card, Futuretrust, Upromise)?

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.

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Notes: _______________________________________________________________________

Will I have online access to my account for looking up my account values, etc?

Yes

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Who can I name as "payee" on distributions from this 529 plan? How easy is the process of requesting distributions?

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

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Notes: _______________________________________________________________________

Will this 529 plan accept my request to transfer the account owenership to someone else?

Accepts requests to transfer account ownership.

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Notes: _______________________________________________________________________

How thorough and understandable are the program's official disclosure materials, and how much help is available through the programs web site, call center, etc.?

Accepts requests to transfer account ownership.

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Notes: _______________________________________________________________________

Are there any other considerations unique to this program that can be considered advantages or disadvantages?

Accepts requests to transfer account ownership.

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Notes: _______________________________________________________________________

Before investing, be sure to read and understand the official program materials provided on the 529 plan's website.

Click here to visit

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Notes: _______________________________________________________________________