Indiana529 Advisor is a Section 529 plan offered by the Indiana Education Savings Authority. Named for it's specific section in the U.S. tax code, 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 Advisor 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 Advisor account. An account owner can select a child, adult or even themselves as beneficiary. They do not have to be related to the account owner.

Anyone - friends, family, even the beneficiary themself - can contribute to the same Indiana529 Advisor 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, to open an account for an unborn child, an account can be opened in the parent's 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 the identities, the plan reserves the right to close your account or take other steps we deem reasonable. A Social Security number is also required for tax-reporting purposes.

Earnings in an Indiana529 Advisor 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! Indiana taxpayers (resident or non-resident, married or individual) are eligible for a state income tax credit of 20% of contributions to an Indiana529 Advisor account, up to $1,500 per year. 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.

Absolutely! Unlike other education savings options, an Indiana529 Advisor account owner controls the account. That means the beneficiary can be changed to another eligible member of the family, as outlined in the Disclosure Booklet.³

There are many ways to contribute to an Indiana529 Advisor account, including:

1. Electronic funds transfer (opening contribution of $10) from a checking or savings account
2. Automatic investment plan (opening contribution of $10) with scheduled contributions in set amounts from a checking or savings account⁴
3. Payroll deduction (of $10 or more) through participating employers⁴
4. Check (made payable to Indiana529 Advisor Savings Plan)
5. Rollover from another 529 plan
6. Rollover from an Education Savings Account or a qualified Series EE or Series I U.S. Savings Bond
7. Ugift (minimum of $10)
8. Upromise (minimum of $25)⁵

No. Indiana529 Advisor is not insured or guaranteed, with the exception of the Savings Portfolio, which is insured by the FDIC. Investment returns will vary depending upon the performance of the Portfolios you choose. Depending on market conditions, you could lose all or a portion of your investment.

Ugift is a free feature of Indiana529 Advisor that allows friends and family to contribute directly into a 529 account. So instead of a toy a child will outgrow, loved ones can give the meaningful gift of money toward future education. Thousands of Indiana families are already using Ugift to boost their savings.

All you have to do is log in to your Indiana529 Advisor account and share the beneficiary's unique Ugift code. Gifters will use this code by entering it at Ugift529.com, where they can contribute directly into the account. Gifters can even set up a profile at Ugift529.com and set up recurring gifts!

Effective January 1, 2024, 529 account owners will be able to rollover savings from their 529 plan account into a Roth IRA without incurring any federal income tax or penalty. The Roth IRA must belong to the same beneficiary, and the lifetime rollover limit is $35,000. To be eligible, the 529 account must have been open for at least 15 years and the rollover amount must have been in the 529 account for 5 years.

529 to Roth IRA rollovers will also count toward annual Roth IRA contribution limits, but Roth IRA income limits do not apply for this type of contribution. Please note: Roth rollovers are deemed a non-qualified expense for the purposes of the Indiana state tax credit and are subject to tax credit recapture of previously claimed credits.⁶ For more information, please read the Program Description.

529 savings can be used for much more than just tuition! Qualified expenses include tuition, fees, certain room and board costs, books, computers and course-related software, supplies, and equipment. And don't forget, those expenses don't have to be incurred at a traditional 4-year college - it can be for 2-year college, vocational or trade school, registered apprenticeships, or even k-12 related expenses.

No. Assets in an Indiana529 Advisor account may be used at any eligible school in the country and abroad. That includes 2- and 4-year colleges, graduate schools, eligible apprenticeships, and vocational/technical schools.

There is no time limit on when you can use the savings in an Indiana529 Advisor account - so if the child is still deciding their next steps, or taking a gap year, your savings will still be there when they're ready. If the child decides not to pursue any form of higher education, there are still three options:

1. Stay invested. You can leave the money in the account in case the beneficiary decides to attend school later.
2. Change the beneficiary. You can change the beneficiary on the account as long as the new one is an eligible member of the family of the former beneficiary.³
3. Withdraw the money for other uses. Remember - the money is always yours. If you do need to take a non-qualified withdrawal, the earnings portion is subject to federal and state income taxes and may be subject to a 10% federal penalty tax. For exceptions to this penalty, please consult the Disclosure Booklet.

529 plan assets are counted at different rates for the Student Aid Index (SAI) in the FAFSA formula. Federal guidelines are as follows:

• If the student is a dependent, a 529 plan account is considered as the parent's asset (if the account owner is the parent or the dependent student). As a result, it will generally be counted at a rate of only 3-6% of its value for the EFC.
• If the student is not a dependent and is the account owner, the 529 plan account is treated as the student's asset and is generally factored into the EFC at the higher rate of 20%.
• In other cases, the account does not count as an asset for federal financial aid purposes. (However, a student may have to report distributions received from the account as income for these purposes.)
• Beginning with FAFSA applications for the 2024-2025 academic year, as part of the Consolidated Appropriations Act, distributions from a non-parent-owned 529 accounts will no longer need to be reported as the student’s taxable income on the FAFSA.

Note: Financial aid programs offered by educational institutions and other non-federal sources may have their own guidelines for the treatment of 529 plan accounts. For complete information about financial aid eligibility, you should consult with a financial aid professional and/or the state or educational institution offering a particular financial aid program, since rules and regulations often change.