The CollegeInvest Advantage:

In general, the CollegeInvest Plan offers more benefits than Other Savings Options

Compare the CollegeInvest 529 Savings Plan to Other Savings Plans »

Coverdell Education Savings Account	Similar to CollegeInvest: The same tax treatment on earnings and non-qualified withdrawals ; the same annual Gift Tax limitations; and, they both cover the same higher education expenses. Advantages to CollegeInvest: Coverdells can also be used for qualified K-12 expenses including uniforms, transportation, after-school program fees, and computer equipment. Account owners can change their investment options at any time, and without limitations. Generally, there are more investment options available to Account Owners. Shortfalls to CollegeInvest: No Colorado tax deduction for contributions. Contributions are limited to $2,000/year from all sources. Income Limitation: the Account Owner's MAGI cannot exceed $110,000 (single filer) or $220,000 (joint filers). The account cannot take contributions once the Beneficiary reaches the age of 18. All funds in the account must be used by age 30 or penalties are assessed to the account.
Roth Individual Retirement Account	Similar to CollegeInvest: The same tax treatment on earnings and non-qualified withdrawals ; and, both cover the same higher education expenses. Advantages to CollegeInvest: Since this is primarily a retirement account, funds not used for educational expense can be used for the retirement of the account owner. Account owners can change their investment options at any time, and without limitations. Generally, there are more investment options available to Account Owners. Shortfalls to CollegeInvest: Contributions are limited to $5,000/year, $6,000 for taxpayers age 50 and over. Income Limitation: the Account Owner's MAGI cannot exceed $120,000 (single filer) or $177,000 (joint filers). The account is included in the Owner's estate . Can withdraw earnings tax-free only after holding the account for 5 years and the Account Owner is over age 59-1/2.
Uniform Trust/ Gift to Minors Act Account (UTMA/UGMA)	Similar to CollegeInvest: Same annual Gift Tax limitations. Advantages to CollegeInvest: There is no limit on annual contributions. The account's funds must be used to the benefit of the minor, with no restrictions on use or purpose. Shortfalls to CollegeInvest: This is an irrevocable trust , meaning you cannot retrieve the funds for any other purposes, nor can you change the beneficiary. Earnings beyond the first $950 are taxed at either the child's or the parent's tax rate. No Colorado tax deduction for contributions. Account control goes to the child when they reach the age of majority , generally 18 or 21, or the ownership age specified in the trust when it was set-up.
U.S. Savings Bonds	Similar to CollegeInvest: Bonds are very different from other savings vehicles; the major similarity with CollegeInvest is both can be used to cover higher education tuition and required fee expenses. Advantages to CollegeInvest: Bonds can be used for any expense or purpose, not just education expenses, with NO tax implications. Bonds are backed by the full faith and credit of the US government. Shortfalls to CollegeInvest: Maximum bond purchase is limited to $5,000/year per Owner. Bond values are included in the Owner's estate. The ‘tax-free' use of the Bonds for education expenses are restricted to tuition and/or required fees only. The Interest -exemption is not available to Owners with MAGI above $85,100 (single filer) or $135,100 (joint filers).

Compare the CollegeInvest 529 Savings Plan to Other Savings Plans »