About 529s
What is a 529 college savings plan?
529 plans are more than just savings accounts. These state-sponsored college savings plans were established by the federal government in Section 529 of the Internal Revenue Code to encourage families to save more for college. They offer unique state and federal tax benefits you can’t get from other ways to save, making them one of the best ways to save for college.
Why CollegeInvest?
We're the only 529 program that qualifies for a Colorado State tax deduction
As a Colorado resident, every dollar you contribute to any of our 529 plans can be deducted from your Colorado State taxable income. You can't get that from any other plan.1
Your savings grow tax-free
Earnings used for qualified higher education expenses are federal and Colorado State income tax-free, so every dollar you save for college can work harder.2
Estate planning benefits
With the special gift tax election, you can contribute up to $65,000 per person or $130,000 per married couple, per beneficiary in a single year, without incurring a federal gift tax impact. That’s five times the annual gift tax exclusion.3
Start small, save big, start at any time
Although you can open an account with as little as $25—not the case with many other investments—the amount you can save is substantial. You can contribute up to $280,000 per beneficiary.4
You’re in charge
You never lose control of your account, so you can be sure your savings are spent wisely. You decide when and how money is withdrawn to pay for college. If your student decides not to attend college, you can name a new beneficiary or choose to leave the funds in the account.5 If you need your savings for another purpose, you can withdraw the funds. However, there are tax consequences for non-qualified withdrawals.2
Use your savings at colleges nationwide
You can use your savings nationwide at any eligible public or private college, university or vocational school to pay for qualified expenses such as tuition, fees, certain room and board, and required supplies. From Boston to Boise, Alaska to Nebraska or anywhere in between, your savings go with you.
We've found the right experts to manage your investment
All of our investment options are managed by leading professional money managers. By carefully selecting and overseeing the portfolios, the investment managers seek to offer investors a wide selection of investment options, among a broad range of asset classes, to suit your specific investment style and risk tolerance.
It’s easy, but disciplined
- Once you decide which option best suits your needs, budget and tolerance for risk, you simply complete an enrollment form and mail it back to us with your opening deposit—you can even enroll and fund your account online.
- You can sign up for free automatic funds transfers from your checking or savings account—the easiest way to make saving for college a regular habit.6
- Anyone can invest—parents, grandparents, friends and relatives. Local governments and certain not-for-profit organizations and corporations also can contribute.
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Important Considerations
Official Statement
Please read the applicable Plan Disclosure Statements carefully before investing. They explain certain risks, fees, limitations, restrictions and qualifications regarding the Plans’ benefits and potential tax advantages. Plan Disclosure Statements can be found at www.collegeinvest.org. Investments in CollegeInvest Plans are not guaranteed by the state of Colorado or any other governmental entity, and may lose value, including principal amount invested. Administered and issued by CollegeInvest.
Home State
If you or your designated beneficiary are a resident of a state other than Colorado, before investing you should check with your home state to see if it offers a 529 program. That program may offer state tax or other benefits to residents of that state that may not be available to investors in programs of other states.
1 Contributions to the Program in a tax year are deductible from Colorado State income tax up to the extent they are included in your federal taxable income for that year, subject to recapture in subsequent years in which non-qualified withdrawals are made.
2 The earnings portion of a non-qualified withdrawal is subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal penalty tax. Contributions for which a Colorado income tax deduction was taken are subject to recapture in subsequent years in which non-qualified withdrawals are made.
3 Contributions between $13,000 and $65,000 made in one year can be prorated over a five-year period without incurring gift taxes or reducing your unified estate and gift tax credit. If the account owner dies before the end of the five-year period, a prorated portion of the contribution will be included in his or her taxable estate. If you contribute less than the $65,000 maximum, additional contributions can be made without incurring gift taxes, up to a prorated level of $13,000 per year. Gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given student in the year of contribution. Account owners should consult their tax advisor regarding their individual situation.
4 The combined maximum account balance limit for all section 529 plans established and maintained by the state of Colorado for a particular beneficiary cannot exceed $280,000. Although account balances can grow beyond that amount, no additional contributions can be made once the balance reaches $280,000.
5 Restrictions apply. Please see the Plan Disclosure Statements.
6 A periodic investment plan does not ensure a profit or protect against a loss in declining markets. |