Why save with a 529?
When it comes to saving for education, the choices don’t have to feel overwhelming. Your Indiana529 Direct Savings Plan makes saving for tech or trade school, college, or registered apprenticeships easy for families throughout Indiana.
Affordability
You don't need a lot of money to get started - open or contribute to an account with as little as $10.
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Flexibility
Your 529 account is flexible, so you don't have to worry if your - or your child's - plans change in the future.
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Control
Use your savings when and where you want. Funds in your account will always remain your money, and your savings are never trapped.1
Learn More1Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements and certain other withdrawals may be subject to federal, state, and local taxes.
TAX ADVANTAGES
Your new savings secret.
What if saving for education could actually help you save on taxes? Indiana529 Direct offers tax-deferred savings, which could help your money grow faster over time, and a generous state tax credit worth up to $1,500 per year ($750 for married filing separately).2 You don’t have to own the account to claim the credit.
2This credit may be subject to recapture from the account owner (not the contributor) in certain circumstances, such as rollovers to another state's 529 plan, federal nonqualified withdrawals, withdrawals used to pay elementary or secondary school tuition for a school outside of Indiana, education loan repayments, or rollovers to a Roth IRA account, as described in the Disclosure Booklet.
Affordable
529s make education
more affordable.
Hoping for a scholarship is not a great plan. Neither is planning to borrow everything your child may need for education. Opening an Indiana529 Direct account and contributing what you can on a regular basis is an affordable way to save for education. Why?
- Low average costs. Fees for the Plan's investment options range from 0.18% - 0.82%. For example, invest $1,000 and the annual fee could be as low as $2.60.
- No annual account maintenance fee for Indiana residents. A $20 annual account fee is charged for non-residents, but is waived for account balances greater than $25,000.
Flexible
Don’t worry about life’s what if’s.
Your Indiana529 Direct account has more flexibility than you may realize. Your 529 savings can be used to help pay for college and universities, graduate programs, vocational and trade schools, or an apprenticeship that is registered and certified with the Secretary of Labor.
Your 529 savings can also be used for a variety of qualified education expenses, including tuition, room & board, books, fees, computers, equipment and more.
Control
Your savings is never
more than a click away.
Feel secure knowing that you can request a withdrawal at any time and have your money in just a few days. Your savings can be used at a variety of educational institutions, both at home and abroad.
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FAQS
Learn more about 529s
Indiana529 Direct is a Section 529 plan offered by the Indiana Education Savings Authority. Named for its specific section in the U.S. tax code (just like a 401k!), it is designed to help individuals and families save for education in a tax-advantaged way, and offers valuable benefits including tax-deferred growth, generous contribution limits, and attractive investment options managed by some of the world's most trusted asset managers.
For as little as $10, any U.S. citizen or resident alien, 18 or older, or an entity that is organized in the U.S., with a Social Security number and U.S. street address, 18 or older, can open an Indiana529 Direct account, regardless of income level. Parents, grandparents, other family, and friends can open an account for anyone they choose.
Any person of any age (with a Social Security number) can be named as the beneficiary of an Indiana529 Direct account. As account owner, you can select a child, adult or even yourself as beneficiary. They do not have to be related to you.
