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Comparison Charts

529 Savings Plans Roth Individual Retirement Account Uniform Trust/ Gift to Minors Act Account (UTMA/UGMA) Coverdell Education Savings Account Life Insurance
Description State sponsored, tax-advantaged savings vehicles for qualified higher education expenses. Tax-advantaged retirement vehicle that may also be used to fund qualified higher education expenses. Custodial account managed for the benefit of a minor. The account is an irrevocable transfer of assets in a child’s name. (Cannot recover the funds placed in the account.) Tax-advantaged savings vehicle for qualified K-12 and higher education expenses. Life insurance policies must be those which are considered “permanent” and which build cash value as premiums are paid. Using a policy’s loan provision to create cash flow will avoid any tax liability on the transaction.
Income Limits None Yes, subject to Modified Adjusted Gross Income (MAGI) limitations: Individuals: MAGI must be less than $132,000. Married, Joint: MAGI must be less than $194,000. Other restrictions apply. None Yes, subject to Modified Adjusted Gross Income (MAGI) limitations: Individuals: MAGI must be less than $110,000. Married, Joint: MAGI must be less than $220,000. None
Age Requirements for Account Owner or Beneficiary None None Account ownership transfers to the minor upon reaching the age of majority, usually between ages 18-21, or the ownership age specified when the trust was set-up. Contributions: Beneficiary must be under age 18 unless a special needs beneficiary. Distributions: Must be completed by the time the beneficiary reaches age 30, unless a special needs beneficiary Policy owner must be 18-21 years old depending on the state of issue, policy type, and insurance company.
Ability to Change the Beneficiary Yes, at any time, to another qualified member of the current beneficiary’s family, or yourself. Yes, at any time. But there are varying limitations and tax liabilities depending on your selection. No Yes, but only to another member of the current beneficiary’s family under the age of 30, or a special needs beneficiary of any age. Yes, but irrelevant when utilizing cash value.
Use of Funds Tuition. Required fees, books, and supplies. Computers, peripheral equipment, software, and internet access as long as the student is the primary user (other restrictions apply). Room and board for students attending at least half time in a degree or certificate program (certain limits apply). Tuition, room and board, required fees, books, and supplies. Funds must be used exclusively for the benefit of the minor. There are no restrictions on the specific use of the funds, and they don’t have to be used for educational expenses. At the age of majority, the child controls the unrestricted use of funds. For higher education: Tuition, room and board, fees, books, special needs services, and required supplies and equipment. Students must be enrolled at least half-time. For K-12 education: Also includes uniforms, transportation, after-school programs, computer equipment and software, internet access, and tutoring. No restrictions.
Maximum Contribution Limit $400,000 cumulative for all accounts for the same beneficiary Maximum limit is $5,500 ($6,500 for taxpayers 50+) subject to the MAGI limitations. Excess contributions are subject to a 6% excise tax. Unlimited The total amount of all contributions to a single beneficiary cannot exceed $2,000/year. Excess contributions are subject to a 6% penalty. Single-premium limit based on several factors including age of policy owner and face value of the policy. Note: Modified Endowment Contract (MEC) rules dictate these factors.
State Tax Deduction for Contributions Yes, for Colorado taxpayers. No No No No
Federal Income Tax Treatment of Earnings Tax free while in the account and used for qualified, higher education withdrawals. Tax exempt while in the account. Earnings and gains taxed to minor; first $1050 of unearned income is tax exempt; unearned income over $2,100 for certain children under age 24 is taxed at rates for estates and trusts. Tax free if the distributions do not exceed the beneficiary’s qualified education expenses for the year. Taxable, unless taken as part of a policy loan.
Annual Limit for Gift Tax Exclusion $15,000 single/$30,000 married couple per beneficiary in a single year without federal gift tax consequences. Multiple year options are available but restrictions apply. Not applicable. $15,000 single/$30,000 married couple per beneficiary in a single year without federal gift tax consequences. Multiple year options are available but restrictions apply. The maximum contribution limit is below the annual limit for gift tax exclusion. Not applicable.
Direct Portfolio
College Savings Plan
Scholar’s Choice
College Savings Plan
Smart Choice
College Savings Plan
Stable Value Plus
College Savings Plan
Plan Description Our most popular direct-sold plan. Since your family is unique, we offer eleven different 529-investment options ranging from conservative to aggressive. One of the largest advisor-sold 529 plans nationwide, offering significant tax benefits, competitive fees and a broad range of investment options in an active, multi-manager approach. CollegeInvest and FirstBank offer the only FDIC-insured 529 savings option with the Colorado tax deduction for contributions. CollegeInvest has partnered with Brighthouse Financial to offer you a guaranteed fixed-income 529 college savings option, currently 2.29% for 2018.
Program Manager Partnership of Ascensus College Savings and The Vanguard Group, Inc. QS Investors, LLC is the Investment
Manager and Legg Mason Investor
Services, LLC is the primary
Distributor; together they serve
as Manager of the Program
FirstBank Holding Company,
Member-FDIC.
Brighthouse Financial, established by MetLife.
How To Enroll Enroll directly with CollegeInvest
Enroll in Direct Portfolio >
Available exclusively through financial advisors. Enroll directly with FirstBank at efirstbank.com or any FirstBank location. Enroll directly with CollegeInvest at
Enroll in Stable Value Plus >
Who Can be an Account Owner The account owner must be a United States citizen, must have a valid Social Security Number or Taxpayer Identification Number, and must have a permanent address in the United States that is not a P.O. Box. There are no age restrictions to being an account owner. All CollegeInvest plans are open to residents of any state. There can only be one owner per account.
Changing the Beneficiary The account owner may change the beneficiary at any time without adverse tax consequences, provided the new beneficiary is a family member of the original beneficiary.
Minimum to Open an Account $25,
$15 with Payroll Direct Deposit.
$250,
No minimum with Payroll
Direct Deposit.
No Minimum $25
Minimum Contribution $15 $50 No Minimum $25
Maximum Contribution All CollegeInvest plans accept contributions until the balance of all CollegeInvest accounts for the same beneficiary reaches $400,000.