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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.
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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
Taxes
Earnings in your Indiana529 Direct account grow tax-deferred and are free from federal income tax when used for qualified education expenses.1 Those expenses include tuition, fees, certain room and board costs, books, computers and course-related software, supplies, and equipment.
Yes! If you are an Indiana taxpayer (resident or non-resident, married or individual), you are eligible for a state income tax credit of 20% of contributions to an Indiana529 Direct account, up to $1,500 per year ($750 if married, filing separately).
Please note, 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.
Individuals can invest up to $18,000 ($36,000 for married couples) per beneficiary without assuming any gift-tax consequences. You can also contribute up to $90,000 per beneficiary in a single year ($180,000 for married couples) and take advantage of five years' worth of tax-free gifts at one time.2 (Contributions are considered completed gifts and are removed from your estate, but you, as the account owner, retain control.) Upon the death of the account owner, money remaining in the account will not be included in the account owner's estate for federal estate tax purposes. For more information, consult your tax advisor or estate-planning attorney.
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.
