| Tax Benefit |
Federal and Indiana taxes are deferred on earnings until the child begins college and
uses the funds. Then the tax consequences apply to the child, who generally has a lower
tax rate. |
| Methods of Contributing |
- Payroll deduction
- Automatic debit from checking or savings account
- Coupons
|
| Enrollment Period |
Immediately through April 15, 1998. Next year the enrollment period will be September
1 through January 15, 1999. Newborns under one year old can be enrolled at any time during
the year. |
| Age Restrictions |
None! Accounts can be opened for children or adults with valid Social Security numbers |
| Qualified Expenses |
Tuition, fees, text books and, for students attending half-time or more, room and
board. |
| Qualified Colleges |
Public or private schools within or outside of Indiana. Most accredited four-year and
two-year colleges, as well as many technical colleges |
| Contribution Limits |
Minimum of $25 per individual contribution. Lump sum contribution of up to $25,000
when opening the account. Current annual maximum contribution of $9,405. Maximum
contribution over the life of the account of $100,000. |
| Investments |
Investment for Plan funds is determined by the Indiana Education Savings Authority.
The current investment is the Pegasus Managed Assets Balanced Funds. |
| Transferral Policies |
The account can be transferred to benefit a family member of the original beneficiary.
Account ownership can be transferred to a former spouse of the owner or a family member of
the beneficiary. |
| Cancellation Policies |
The account may be closed and funds returned to the owner with a 10% penalty on
earnings. Provisions are included to allow a student to interrupt an educational program
without penalty or requiring account closing. |
| Cost |
- $10 enrollment charge
- Annual 1.25% of account balance for mutual fund management fee
- Annual .50% of account balance for account maintenance assessment
|
IFCSP Home Page
ICHE Home Page