New for 2024
State Updates.
A number of updates to federal and Indiana state law went into effect as of January 1, 2024. These changes include:
- An increase in the gift tax exclusion
- The Indiana state tax impact of rollovers to ABLE Plans
- The federal and Indiana state tax treatment of rollovers to Roth IRA accounts for the beneficiary of a 529 Plan account
- The Indiana state income tax contribution deadline
You can find detailed updates regarding all of these changes in our Disclosure Booklet.
The new Indiana state income tax contribution deadline allows for contributions initiated after December 31 of any tax year beginning with 2023, through the due date of that year’s tax return (Tax Day) to count as previous year contributions. To take advantage of this change for 2023, please note the following:
- Every contribution you make will default to the current contribution year – which is the postmark for mailed contributions or the date and time of the transaction for online/mobile app contributions that are received in good order.
- To change the contribution year from 2024 to 2023, you must do the following:
- CHECKS: If you mail a check, it is postmarked by Tax Day in 2024 and you would like it to be given a contribution year of 2023, you must include a letter with your check indicating a 2023 contribution year.
- ELECTRONIC CONTRIBUTIONS: If you make a contribution online by Tax Day, you must first make the contribution. It will default to the current contribution year of 2024. Once your contribution posts to your account (typically 3 business days), you must call Client Services at 1.866.485.9415 and request that your contribution year be changed to 2023. Your contribution must be received in good order before it can be updated.
Please note that Indiana529 does not provide financial or tax advice. For full details regarding the Indiana State Tax Credit, please read the Indiana Department of Revenue Bulletin #98. Please consult a tax advisor regarding your individual situation and read the Disclosure Booklet carefully before investing.