Put your student’s refund back to work
If your beneficiary received a refund of qualified expenses from an eligible educational institution, consider re-contributing the proceeds into their CollegeChoice 529 account so that the savings can be used for future qualified expenses.
You can re-contribute a 529 account refund for money paid for qualified expenses back into the same or another 529 account and avoid incurring both federal and Indiana income tax or the recapture of the Indiana state income tax credit if:
- You re-contribute the refund to the student’s qualified tuition program account; and
- The re-contribution is made within 60 days of the date of the refund from the eligible educational institution or July 15, 2020, whichever date is later.
Here’s what to do once your student receives a refund:
- Endorse the back of the check “payable to CollegeChoice 529.”
- Send in the check along with a signed letter of instruction stating that you want the funds deposited back into the student’s CollegeChoice 529 account as a re-contribution of a previous qualified withdrawal.
- If you have already cashed the check, you can still re-contribute the amount into the student’s CollegeChoice 529 account. Please keep detailed records of all refund information for your taxes.
For additional information, please call us at 1-866-485-9415, Monday − Friday, 8 a.m. − 8 p.m. ET.