Frequently Asked Questions

• Tuition
• Required fees
• Certain room and board expenses
• Required books
• Required supplies

• 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.

• You can name another beneficiary (including siblings or even yourself).
• You can leave the funds in the account for when he/she might attend college later.
• You can withdraw the funds, however, there are tax consequences for non-qualified withdrawals .²

• 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.

• 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

• 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.

• Tuition
• Fees
• Certain room and board expenses
• Required books
• Required supplies

• 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/.

• 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.

• 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.

 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.

 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.

 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.

Important Considerations

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.