- About CollegeInvest
- Employer Benefits
- Employee Benefits
- Tools and Resources
Frequently Asked Questions
Employers Want to Know
What’s the cost to offer this program to my employees?
How much administrative work is involved in offering this program to my employees?
Are there forms I need to complete for my company to participate?
Do I have to explain this program to my employees, or does CollegeInvest have resources to educate my employees as to what’s available?
What if we want to participate but our Payroll Department cannot offer direct deposit?
Our company has employees in various states, is this program only available to our Colorado employees?
Employees Want to Know
Who can participate?
What if I don’t live in Colorado?
We recommend checking to see if your state offers a 529 college savings plan that offers special tax advantages for your state.
When can I first open a CollegeInvest savings plan? When is it too late?
Every dollar you save will help!
What are the eligible expenses covered by a CollegeInvest college savings plan?
- Required fees
- Certain room and board expenses
- Required books
- Required supplies
What are the benefits of investing with CollegeInvest?
- CollegeInvest lets Colorado residents deduct every dollar you contribute to your account from your Colorado state taxes.1
- Your account will grow federal and Colorado state tax-deferred.2
- If you use your account for qualified expenses, withdrawals are also exempt from federal and state taxes.2
- CollegeInvest offers a wide range of investment options.
- Our investment options are managed by leading professional money managers who carefully select and oversee all our portfolios.
What’s a beneficiary?
Can more than one student be listed as a beneficiary on the account?
Can parents and grandparents open two separate accounts for the same student?
Is my student required to go to college in Colorado?
What if my student doesn’t go to college?
What if my student gets a scholarship?
- You can use your funds to cover eligible items like room and board, books and other supplies that some scholarships don’t cover.
- Leave the funds in the account for use for other higher education expenses.
- You can transfer the account to another beneficiary or even yourself.
- Or, you may withdraw funds from your account equal to the scholarship amount, without the standard 10% non-qualified withdrawal penalty on earnings . However, the earnings portion of your withdrawal is subject to federal and state income taxes at the student’s normal tax rate.
Will my account affect my student’s financial aid eligibility?
529s are viewed as a parental asset if the parent is the account owner, and not a student asset. So the funds in a 529 account are weighed less heavily in the formula used by colleges and the federal government to determine financial need.
In addition, if a grandparent owns the account there is no impact on the financial aid formula at all.
Are there minimum contribution requirements?
- Direct Portfolio : Initial contribution minimum is $15 if you establish Direct Deposit ($25 otherwise), and subsequent contributions must be at least $15
- Scholars Choice: No minimum initial or subsequent contribution if participating in an Employer Plan, otherwise initial contribution minimum is $250, with subsequent contributions of $50
- Smart Choice: No minimum initial or subsequent contribution
- Stable Value Plus: Minimum $25 for initial and subsequent contributions
Can I change my investment options?
- Existing funds in a CollegeInvest college savings account can be adjusted once per calendar year.
For example: You have $5,000 in conservative funds but want to place the money in aggressive funds. You’re allowed to re-allocate this money once per calendar year. This is considered changing your investment option .
- Transferring from one 529 plan to another for the same beneficiary can happen once per 12-month period.
- Allocations for future contributions can be changed at any time.
For example: You have $3,000 in aggressive funds already in your 529 account and you would like to contribute $100 from your paychecks for the next few months. But you want the “new” money to be allocated into conservative funds.
You’re allowed to do this with the new $100 going into your account since it’s a future contribution. However, your existing $3,000 will stay in the aggressive funds.
Will I get hit with a bunch of fees?
Can I check my account balance online?
What happens if we move out of Colorado?
How can account savings be used?
- Certain room and board expenses
- Required books
- Required supplies
What schools are eligible?
- Community colleges
- Public and private four-year colleges and universities
- Graduate and post-graduate programs
- Some proprietary and vocational schools
Here are a few examples of schools you can use your CollegeInvest college savings account that you might not have thought of:
- Hawaii Institute Of Hair Design - Hawaii
- Wood County School Of Practical Nursing – West Virginia
- American Academy Of Dramatic Arts – New York
- Culinary Academy Of Austin – Texas
- Bel-Rea Institute Of Animal Technology - Colorado
If there is a specific school you or your student is interested in and would like to know if a CollegeInvest savings plan can be used there, visit http://www.savingforcollege.com/eligible_institutions/.
What if my student only wants to go half-time?
- Students attending less than half-time: Savings can be used for all qualified higher education expenses—other than room and board.
- Students attending half-time or more: savings can be used for certain room and board expenses and qualified higher education expenses.
What if I really need that money for something other than college?
How do I make a qualified withdrawal?
- You can withdraw money at any time after your contribution has been processed by CollegeInvest and the money is fully invested.
- Complete a Withdrawal Request Form instructing the plan manager to send the money to you, the student or the student's school.
- Retain documentation for your own records showing your withdrawal was used to pay for qualified expenses.
Do I have to pay taxes on withdrawals?
Can I make a withdrawal from my Upromise Rewards account if it is not linked to my CollegeInvest account?
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 are made.
³The 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.
CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest.