College Choice CD 529
You save for your children and grandchildren because you know how important a college education is today and will be tomorrow. With CollegeChoice CD, you can get a head start on positioning them for a successful future.
A Flexible Program
Any U.S. Citizen or Resident Alien can participate, and there are no income limitations. All it takes to open an account is $25 a month if you sign up for direct deposit or payroll deduction. You can also contribute to the account by check, E-check for online enrollments or through a rollover distribution from another qualified tuition program.
The funds in the account can be used to cover the costs of attending any 2-year or 4-year U.S.-accredited college, university or technical school that is eligible to participate in U.S. Department of Education student financial aid programs, even if the campus or location is outside of the country. They can also be used for nearly any graduate school, medical school, or law school, among others, nationwide.
Eligible college expenses include:
- Tuition
- Fees
- Textbooks
- Supplies
- Certain equipment required to attend an eligible institution
- Room and board expenses up to a specified level (if student’s enrollment qualifies for at least half time)
Tax Benefits
- Earnings grow tax-deferred1
- Distributions used to pay for qualified education expenses are tax-free2
- For Indiana taxpayers, contributions made to this plan are eligible for a state income tax credit of 20%, up to $1,500 per year3
The Safe Choice
Each of the three savings options from CollegeChoice CD features FDIC insurance up to $250,000 per account owner.4 Whether your child is about to enter school or you need to diversify your college savings portfolio, these options provide principal protection to make saving for college safe and secure.
Drop in one of our branch locations or call our One Call Center at (888) 522-2265 to get more information about a CollegeChoice CD 529 Savings Plan.
Or visit CollegeChoiceCD to request more information.5
1Earnings on nonqualified 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 and early withdrawal penalties. The availability of tax or other benefits may be contingent on meeting other requirements.
2Contact your tax or legal advisor to answer your specific questions about eligibility, distributions and penalties.
3This 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 Disclosure Statement for additional details.
4The 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 College Savings Bank 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, in the same right and capacity, up to the maximum amount.
5The Enrollment Kit includes a Disclosure Statement that discusses investment objectives, risks, charges, expenses and other important information; read and consider it carefully before investing.
