Indiana 529 Plan: What College Savers Should Know

Per the Federal Reserve, Indiana held about $6.1 billion in 529 plansin June 2022.^[1] These savings accounts help people save for college and other educational expenses for themselves or beneficiaries like children or grandchildren.

529 plans also usually come with tax advantages. Here's information about Indiana's 529 plans and rules for state residents.

Indiana 529 Plans

Indiana offers three college savings plans: a fixed-rate account, a self-guided (direct) investment portfolio, and an advisor-guided plan.

CollegeChoice 529 Direct College Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? Yes
• Fees: 0.14-0.64% plus a $20 annual maintenance fee for out-of-state residents only
• Performance Notes: The 2024 Enrollment Portfolio has gained 4.19% in average annual returns since its creation.

CollegeChoice CD 529 Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? Yes
• Fees: None
• Performance Notes: A fixed-rate CD can earn 3.5-4% in interest over one to three years.

CollegeChoice Advisor 529 Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? Yes
• Fees: 0.31-2.15% plus a $20 annual maintenance fee for out-of-state residents, which could be waived if your balance is over $25,000
• Performance Notes: The 2025 Enrollment Portfolio Class A has earned 4.83%-5.22% on average over its lifetime.

Indiana 529 Tax Credit and Rules for Savers

According to the College Savings Plan Network:^[2]

• State residents can take a tax credit on contributions to an Indiana 529 — up to 20% on $5,000 contributed.
• In Indiana, you can contribute up to $450,000 in total to college savings plans.
• Indiana also allows savers to use 529 plans for K-12 educational expenses.