Facts of the Month

529 Plans and Changes to the Indiana State Income Tax Credit

Do you have a 529 Plan? if so, note there are some important changes to the Indiana State Income Tax Credit: In order to avoid confusion as to tax year, please note that contributions to the CollegeChoice 529 Direct Savings Plan ("CollegeChoice 529") must be RECEIVED by CollegeChoice 529 on or before December 31, 2013 to claim the 2013 Indiana state tax credit.

Indiana taxpayers are eligible for a state income tax credit of 20% of contributions to their CollegeChoice 529 account, up to $1,000 credit per year. This credit may be subject to recapture from the account owner (not the contributor) in certain circumstances, such as rollover to another state's 529 plan or non-qualified withdrawal.

For more information about the CollegeChoice 529 Direct Savings Plan ("CollegeChoice 529"), call 1.866.485.9415 or visit www.collegechoicedirect.com to obtain a Disclosure Statement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing. Upromise Investments, Inc. ("UII") is Distributor of CollegeChoice 529.

If you are not an Indiana taxpayer, consider before investing whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. 

Publication Date: December 2013