You’ve got questions, we’ve got answers
Frequently Asked Questions from ADVISORS
Do I need a sales agreement? How do I set one up?
How do I get paid?
No compensation will be paid through the Direct Portfolio, Smart Choice or Stable Value Plus plans.
How can I access my clients account information?
How do I order materials?
Log onto www.myleggmason.com and order the materials that are right for you.
Frequently Asked Questions from Your CLIENTS
They have questions, now you have the answers!
What is a 529 savings plan?
What are the benefits of investing with CollegeInvest?
Your account will grow federal and Colorado state tax-free for the duration of your investment. If you use your account for qualified expenses, earnings are also exempt from federal and Colorado state taxes.2
Finally, to meet the diverse needs of the many families we serve, CollegeInvest offers a wide range of investment options.
Who can participate?
You may even open an account for yourself.
There are no age limits on who may invest money or who may benefit from the funds.
What higher education expenses are covered by the plan?
Can I change my investment option for my account?
Can there be more than one account for the same student?
Can I designate more than one student as a beneficiary of a single account?
Is my student required to attend a Colorado college?
What if my student doesn’t go to college?
What if my student gets a scholarship?
However, many scholarships do not cover eligible items like room and board, books and other required supplies. You can use your funds to pay for these expenses.
Alternatively, you could transfer the account to another beneficiary4 or leave the funds in the account for use for other eligible higher education expenses.
Will my account affect my student’s eligibility for financial aid?
Are there minimum contribution requirements?
How much can I contribute?
Contributions between $14,000–$70,000 ($28,000–$140,000 for couples filing jointly) made in a single year can be prorated over a five-year period without incurring gift taxes or reducing your unified estate and gift tax credit.
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. Please consult your tax advisor regarding your individual situation.
Is there a limit to the total amount held in an account?
How can account assets be used?
What are “eligible institutions of higher education”?
To be an "eligible institution of higher education" for 529 College Savings Plan purposes, an institution must be eligible to participate in certain U.S. Department of Education student financial aid programs.
Get a list of eligible institutions
Can account assets be used for part-time students?
What if I need to make a withdrawal for something other than college?
When may I take money out of my account?
How can we contact you for more information?
1 Contributions to the Plan(s) are deductible from Colorado state income tax in the tax year of the contribution
, up to your Colorado taxable income for that year. Such deductions are subject to recapture in subsequent years in which non-qualified withdrawals
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.
3 The combined maximum account
balance limit for all 529 plans established and maintained by the State of Colorado for a particular beneficiary cannot exceed $350,000. Although account balances can grow beyond that amount, no additional contributions can be made once the balance reaches $350,000.
4 Restrictions apply. Please see the Plan Disclosure Statements.
5 Contributions between $14,000 and $70,000 made in one year can be prorated over a five-year period without incurring federal 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 $70,000 maximum, additional contributions can be made without incurring federal gift taxes, up to a prorated level of $14,000 per year. Federal 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.
6 The combined maximum account balance limit for all 529 plans established and maintained by the State of Colorado for a particular beneficiary cannot exceed $350,000. Although account balances can grow beyond that amount, no additional contributions can be made once the balance reaches $350,000.
To learn about CollegeInvest’s 529 program, its objectives, risks, charges, expenses, limitations, restrictions and qualifications regarding the Plans’ benefits and potential tax advantages, please read and consider carefully the Program Disclosure Statements (PDS) available at www.collegeinvest.org before investing. Also, check with your or your beneficiary’s home state to learn if it offers tax or other benefits for investing in its own plan. Administered and issued by CollegeInvest.
Investments are not guaranteed by CollegeInvest, the State of Colorado, its agencies, The Vanguard Group, Inc., Upromise Investments, Inc., Legg Mason Global Asset Allocation, LLC, or FirstBank, and may lose value, including principal amount invested. The guarantee of Stable Value Plus College Savings Plans is the obligation of MetLife and only to the extent of the Funding Agreement. Smart Choice College Savings Plans are not insured by CollegeInvest, the State of Colorado, or its agencies. However, these funds are FDIC-insured in accordance with the current FDIC coverage limits.
CollegeInvest is the issuer of plan securities and is the trustee of the plans in accordance with Colorado law. CollegeInvest also oversees the Managers' activities and provides certain administrative services, such as marketing, audit, and financial statements, in connection with the plans.
Upromise Investments, Inc. serves as Plan Manager for the CollegeInvest Direct Portfolio College Savings Plan and has overall responsibility for the day-to-day operations, including effecting transactions. The Vanguard Group, Inc. also serves as Plan Manager and Investment Manager for the CollegeInvest Direct Portfolio College Savings Plan, and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists CollegeInvest with marketing and distributing the Direct Portfolio Plan. The Direct Portfolio Plan’s portfolios, although they invest in Vanguard mutual funds , are not mutual funds and you could lose money by investing in the plan. Vanguard Marketing Corporation, Distributor and Underwriter.
Legg Mason Global Asset Allocation, LLC, Investment Manager for the CollegeInvest Scholars Choice College Savings Program. Legg Mason Investor Services, LLC is the primary distributor of interest in the Program; together they serve as Manager of the Program.
FirstBank serves as the Plan Manager for the CollegeInvest Smart Choice College Savings Plan and has overall responsibility for the day-to-day operations, including effecting transactions. FirstBank also assists CollegeInvest with marketing and distributing the CollegeInvest Smart Choice College Savings Plan. FirstBank - Member FDIC.
The MetLife Insurance Company serves as the Investment Manager for the CollegeInvest Stable Value Plus College Savings Plan. CollegeInvest has overall responsibility for the day-to-day operations, including effecting transactions.
CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest. CollegeInvest Direct Portfolio College Savings Plan, Scholars Choice, CollegeInvest Smart Choice College Savings Plan, and CollegeInvest Stable Value Plus College Savings Plan are registered service marks of CollegeInvest. Vanguard is a trademark of The Vanguard Group, Inc. Upromise is a registered service mark of Upromise, Inc.