A Few Other Questions...

I already make direct tuition payments to my grandson’s school. How would a 529 help me?

In addition to tuition expenses, a CollegeInvest savings plan allows you to use your savings for your grandchild’s required fees, certain room and board costs, and their required books and supplies. These costs can be covered any eligible school in the country – whether it’s a college or university, trade or vocational school.

We have several grandchildren who live in different states. Does the CollegeInvest 529 apply to each of them?

Yes, your savings account can help cover their eligible higher education expenses regardless of where they live or go to school. The school must be an eligible school or institution, meaning they offer higher education studies and participate in federal student financial aid programs.

A unique feature of the CollegeInvest savings plan is that as a Colorado resident, your contributions to your various accounts are deductible from your Colorado state income tax.¹

I’m worried about my health and unplanned expenses. Can I get my money back out of my college savings account?

Yes you can. You can take funds out of an account at any time, for any reason. But that money may be subject to tax and a 10% penalty on the earnings portion if it’s not used for higher education expenses.

This feature makes 529s unique in that many other types of gifts, such as trusts, family partnerships, UGMA/UTMA’s and others are not revocable.

Source: savingforcollege.com

If I need to apply for Medicaid benefits, will my 529s for my grandchildren be counted as part of my assets?

Unfortunately, most states will generally treat your 529s as assets since they are revocable and you can back the money in the account. These funds can be ‘available’ to pay for nursing home expenses and other medical expenses. If you are concerned, you should talk with your attorney or estate planner.

Source: savingforcollege.com

 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.

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.