Indiana Administrative Code Title 540 - INDIANA EDUCATION SAVINGS AUTHORITY
Indiana Administrative Code – Title 540: INDIANA EDUCATION SAVINGS AUTHORITY
Title 540 of the Indiana Administrative Code pertains to the Indiana Education Savings Authority (IESA), which administers Indiana’s 529 college savings plans—most notably the CollegeChoice 529 Savings Plans. These programs help individuals and families save for future qualified education expenses in a tax-advantaged way.
Key Functions and Regulatory Areas Covered in Title 540
1. Authority Structure and Governance
Defines the composition, powers, and duties of the Indiana Education Savings Authority Board.
Outlines the appointment process, terms, and meeting procedures for board members.
2. Administration of 529 Savings Plans
Rules for establishing and maintaining individual savings accounts under the CollegeChoice plans.
Designates qualified tuition programs in compliance with Section 529 of the Internal Revenue Code.
3. Plan Management and Investment Options
Sets requirements for the selection and oversight of program managers (e.g., financial institutions handling funds).
Includes guidelines for the investment of contributions, risk disclosures, and portfolio management.
4. Account Holder Responsibilities
Conditions for opening, contributing to, and withdrawing from accounts.
Defines qualified educational expenses and tax implications.
5. Fees and Charges
Details administrative fees, penalties, and other costs associated with maintaining a 529 account.
6. Reporting and Transparency
Requirements for annual reporting, audits, and financial disclosures to ensure accountability.
Purpose
Title 540 ensures the responsible operation of Indiana’s college savings programs and protects both account holders and beneficiaries by regulating the administrative, investment, and operational aspects of the 529 plans.
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