Indiana Residents can now save in FDIC-insured Certificates of Deposit as part of their overall college savings strategy
Announced in January 2011 by State Treasurer Richard Mourdock, Chairman of the Indiana Education Savings Authority, the CollegeChoice CD 529 Savings Plan (CollegeChoice CD) is now available to college savers in Indiana. College Savings Bank serves as Program Manager to CollegeChoice CD and offers three FDIC-insured* CDs to Indiana families and families nationwide; the CollegeChoice CollegeSure® CD, the CollegeChoice InvestorSure® CD and CollegeChoice Fixed Rate CDs.
CollegeChoice CD is unique to Indiana’s State-sponsored 529 plan in that college savers can enroll through participating local banks and investment advisors as well as on their own online or by mail. CollegeChoice CD will be one of the first 529 college savings programs in the country to offer such broad access and convenience.
“Hoosiers have enjoyed one of the most robust 529 college savings plans in the country,” said Treasurer Mourdock. “Along with the high-quality equity, fixed income, money market and savings investments offered through CollegeChoice Direct and CollegeChoice Advisor, CollegeChoice CD will make up the third leg in a fully comprehensive college savings strategy.”
With CollegeChoice CD, Indiana residents can save for a loved one’s future college education while also enjoying great tax advantages as an added bonus. Contributions to a CollegeChoice CD account are eligible for a state income tax credit of 20%, up to $1,000 credit per year.** Earnings grow tax-free and distributions used to pay for quailed education expenses are tax-free.***
To learn more about CollegeChoice CD visit www.collegechoicecd.com. CollegeChoice CD can also be reached by e-mail at [email protected] or by phone at 1-888-913-2885 from 9 a.m. to 6 p.m. Eastern time.
*The Federal Deposit Insurance Corporation (FDIC) generally insures, with respect to each FDIC-insured institution, deposit accounts that are held in the same right and capacity up to the maximum amount set by federal law, currently $250,000. An account owner’s interest in the insurable balance of a CollegeChoice CD account is insured by the FDIC on a pass-through basis, together with any other deposit accounts the account owner holds at College Savings Bank, up to the maximum amount. Please see the Enrollment Kit for further information. The CollegeChoice CD 529 Savings Plan is not insured by the State of Indiana. Neither the principal invested nor the investment return is guaranteed by the State of Indiana.
**This credit may be subject to recapture from the account owner (not the contributor) in certain circumstances, such as a rollover to another state’s qualified tuition program or a non-qualified withdrawal. The credit does not apply to rollovers from another state’s qualified tuition program.
See the Enrollment Kit for more details.
*** Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, state and local income taxes, and CD early withdrawal penalties. The availability of tax or other benefits may be contingent on meeting other requirements. See the Enrollment Kit for more details.
© 2011 Indiana Education Savings Authority and College Savings Bank, a Pacific LifeCorp Company. Member FDIC. All rights reserved. CollegeSure and InvestorSure are registered trademarks of College Savings Bank. S&P 500 is a registered trademark, used with permission, of The McGraw-Hill Companies, Inc.