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We want you to be 100% comfortable with your Indiana529 Direct Savings Plan. Find answers to common questions, or reach out to our Client Services team.
Contact Us
clientservice@indiana529direct.com
1-866-485-9415
Regular Mail:
Indiana529 Direct Savings Plan
P.O. Box 219418
Kansas City, MO 64121
Overnight Delivery:
Indiana529 Direct Savings Plan
1001 E 101st Terrace, Suite 200
Kansas City, MO 64131
General Questions
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.
Anyone - friends, family, even the beneficiary themself - can contribute to the same Indiana529 Direct account! Total contributions cannot exceed $450,000 for all accounts for the same beneficiary in 529 plans sponsored by the State of Indiana.
Technically, the beneficiary must have a Social Security number or other taxpayer identification number before an account can be opened. This is so the identities of both the account owner and beneficiary can be verified. However, if you would like to open an account for an unborn child, an account can be opened in your name as both the account owner and beneficiary. Then, once the child is born, the beneficiary ownership can be transferred to the child. If we're unable to verify your identities, the plan reserves the right to close your account or take other steps we deem reasonable. Your Social Security number is also required for tax-reporting purposes.
1Earnings 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.
2In the event the donor does not survive the 5-year period, a pro-rated amount will revert back to the donor's taxable estate.
3Section 529 defines a family member as: a son, daughter, stepson or stepdaughter, or a descendant of any such person; a brother, sister, stepbrother, or stepsister; the father or mother, or an ancestor of either; a stepfather or stepmother; a son or daughter of a brother or sister; a brother or sister of the father or mother; a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law; the spouse of the beneficiary or the spouse of any individual described above; or a first cousin of the beneficiary. Gift or generation-skipping transfer taxes may apply. Please consult with your tax advisor for further information.
4A plan of regular investment cannot assure a profit or protect against a loss in a declining market.
5Upromise® is an optional program offered by Upromise®, LLC, is separate from Indiana529 Direct Savings Plan, and is not affiliated with the State of Indiana. Terms and conditions apply to the Upromise® program. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Transfers from Upromise® to an Indiana529 Direct account are subject to a $50 minimum and do not count towards the Indiana state tax credit.
6 Indiana taxpayers are eligible for a state income tax credit of 20% of contributions to an Indiana529 Direct Savings Plan account, up to $1,500 credit per year ($750 for married couples filing separately). This 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 non-qualified 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.
