Tax Benefits 

A Tax-Advantaged Way To Save

Each of CollegeInvest’s College Savings Plans offers multiple tax benefits that can help make it easier to save money for a future college student.

Colorado residents, save on your state income taxes by opening or contributing to a CollegeInvest 529 College Savings Account by December 31st! For every dollar you invest, you can deduct a dollar from your Colorado State taxable income—an exclusive benefit from CollegeInvest.¹

• Tax-deductible contributions for Colorado taxpayers ¹

  If you are a Colorado taxpayer, you may deduct all your annual contributions to the 529 plan from your Colorado State taxable income. However, deductions are subject to recapture in any subsequent tax years in which you make non-qualified withdrawals .

• Qualified withdrawals free of federal and state income taxes ²

  Your 529 assets will grow tax-deferred and will be free of federal and Colorado State income taxes when used for qualified higher education expenses (tuition, certain room and board, books, supplies, equipment required for attendance, and in the case of a special-needs students, expenses incurred in connection with enrollment or attendance).

• Federal gift tax incentive ³

  You can contribute up to $70,000 in a single year ($140,000 for a married couple filing jointly) for each beneficiary without incurring federal gift tax , provided you don't make any other contributions or gifts to that beneficiary during that year or for the next four years. For details, consult a qualified tax advisor.

Additional tax-related information about 529 College Savings Plans is available from the Colorado Department of Revenue and the U.S. Department of the Treasury.

 ¹Contributions to the Programs in a tax year are deductible from Colorado State income tax up to the extent that they are included in your federal taxable income for that year, subject to recapture in subsequent years in which non-qualified withdrawals are made.

 ²Please note, 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.

 ³Contributions between $14,000–$70,000 ($28,000–$140,000 for couples filing jointly) made in one year can be prorated over a five-year period without incurring gift taxes or reducing your unified estate and gift tax credit. If you contribute less than the $70,000 maximum ($140,000 for couples filing jointly), additional contributions can be made without incurring gift taxes, up to a prorated level of $14,000 per year ($28,000 for couples filing jointly). 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.

Important Considerations

Note: CollegeInvest , its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. The applicable federal, state, and local tax rules are complex; some of the rules are at present uncertain, and their application to any particular person may vary according to the facts and circumstances specific to that person. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor.

Official Statement
Please read the applicable Plan Disclosure Statements carefully before investing. They explain certain risks, fees, limitations, restrictions and qualifications regarding the Plans’ benefits and potential tax advantages. Plan Disclosure Statements can be found at www.collegeinvest.org. Investments in CollegeInvest Plans are not guaranteed by the state of Colorado or any other governmental entity, and may lose value, including principal amount invested. Administered and issued by CollegeInvest.

Home State
If you or your designated beneficiary are a resident of a state other than Colorado, before investing you should check with your home state to see if it offers a 529 program. That program may offer state tax or other benefits to residents of that state that may not be available to investors in programs of other states.

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