529 truths.


Myth: Money in a CollegeChoice 529 account can only be used at schools in Indiana.
Truth: You can use the assets in your CollegeChoice 529 account at any eligible 2- and 4-year college, graduate school (including law and medical), and vocational/technical school.1

Myth: You can only use a 529 account to pay for college tuition.
Truth: You can use your CollegeChoice 529 account assets for many qualified higher education expenses, including tuition, fees, computers, and certain room and board costs.2

Myth: It costs a lot to open and maintain a 529 account.
Truth: Open a CollegeChoice 529 account with as little as $10 a month with recurring contributions (an automatic investment plan)3 or a one-time opening contribution of $10. You can also set up payroll deduction through a participating employer with a $10 minimum per pay period.3

Myth: You have to make a lot of investment decisions.
Truth: With a CollegeChoice 529 account, you can be as hands-on or hands-off as you want to be. You can choose from a lower-risk, FDIC-insured Savings Portfolio; Age-Based Portfolios that automatically adjusts its investments as your child nears college; or Individual Portfolios that helps you design your own investments.

Myth: It's too late to start a 529 plan.
Truth: Even if your student is already in high school, you can benefit from a 529 plan. Earnings grow federal tax-deferred, and when you withdraw the money for a qualified higher education expense, it is free of federal tax.2 Any assets not used may even be rolled over to another eligible family member's account.

Myth: If your child doesn’t go to college, you lose your money.
Truth: The 529 plan account owner controls the account. So you can change your beneficiary to another eligible "member of the family4" with no tax penalty.

Myth: It's difficult to open a 529 plan account.
Truth: It's fast and easy to enroll online.

Myth: It's expensive to save for college.
Truth: With a CollegeChoice 529 account, it's affordable. Total annual asset-based CollegeChoice 529 plan fees range from 0.26% - 0.90%. For example, if you invest $1,000, the annual fee would be just $2.60. All non-resident accounts are charged an annual account fee of $20; that fee is waived if the designated beneficiary or account owner is a resident of Indiana.

1 An eligible institution is one that can participate in federal financial aid programs.
2 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
3 A plan of periodic investment does not assure a profit or protect against a loss in declining markets.
4 Section 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.