Systems and methods are provided for aligning status indicators on a terminal block of an I/O device by locating the status indicators directly adjacent to or integrated directly within their respective terminals on the terminal block. The status indicators are illuminated by LEDs or other light emitters disposed within a housing of the I/O device. Light from the LEDs are directed to the status indicators by light pipes disposed within the housing of the I/O device. LED activation circuitry disposed within the housing determines a manner in which to activate the LEDs to illuminate the status indicators based on inputs and outputs between the I/O device and a controlled process. In certain embodiments, the status indicators are disposed on a raised section of the I/O device, which may be part of a removable LED indication assembly including the LEDs, light pipes, and LED activation circuitry.