Unlike many other savings options, there are no age or income restrictions to open a CollegeInvest account(s) as long as you are a U.S. citizen (or resident alien) with a Social Security number or Taxpayer ID number. This applies to your Beneficiaries as well.
Do I have to turn over my savings to my child or granddaughter when they turn 18 or 21?
No, you are not required to do anything of the sort.
You can pay the expenses directly.
You can have the Plan Manager pay expenses directly (check with your Plan Manager).
At your discretion, you can withdraw the funds and have the student pay the expenses. But we suggest you keep a record of the receipts to avoid any tax penalties for nonqualified expenses.
My Son is now 26 and out of school. What can I do with the remaining savings?
You can change the Beneficiary to someone else in your family who may be able to use them.
You can name yourself as the Beneficiary and use the savings for yourself (try an eligible cooking or art school).
Or, withdraw the funds but you are now subject to federal and state income taxes on the earnings and a 10% federal penalty on the earnings.
When we talk with parents and grandparents about saving for college, flexibility is at the top of their concerns. It’s also the most inherent benefit of 529 savings plans.
For Colorado taxpayers, contributions to any CollegeInvest 529 account can be deducted from your Colorado state income tax return. Your earnings grow free of federal and state taxes.
You as the Account Owner control the number of accounts, the Beneficiaries, how much to save, what you pay for and when, and more. With the flexibility to change any of these when YOU want to.