Paying for college can be a stressful experience. The typical family will spend $23,189 for their child to attend a 4-year public college in 2015¹. Imagine what that number could be if your son or daughter is only 4 years old now. While scholarships and grants can help ease the financial burden, they typically only account for 30% of the total cost.
Here are 7 reasons to open a 529 College Savings Plan with CollegeInvest:
A Dollar-for-Dollar Deduction on Contributions
Every dollar you contribute to a CollegeInvest 529 savings account can be deducted from your Colorado income taxes². It’s the only state-sponsored 529 plan that offers this benefit. This not only provides incentive to open your CollegeInvest savings account, but to keep contributing throughout the year to meet your savings goals. The more money you save, the more you can potentially deduct when you file your Colorado tax return.
Use Your Savings Anywhere in the Country
Your CollegeInvest savings can be applied anywhere in the country, from Maine to California, Minnesota to Texas. In fact, there are schools internationally where you can use your CollegeInvest funds to pay for tuition, room & board, or required fees.
Savings Can Be Used at Any School, Anywhere
While attending a 4-year university or college has been the traditional way of thinking, more families are broadening their options to consider other alternatives. With a CollegeInvest Savings Plan, you have the flexibility to use your savings at community colleges and most trade or vocational schools around the country.
Earnings are Tax Exempt
With a CollegeInvest 529 Savings Plan, the earnings on your savings are tax-exempt at both the federal and Colorado state level³. Furthermore, withdrawals for qualified higher education expenses are exempt from state and federal taxes as well.
The Beneficiary Can Be Changed At Any Time
One of the great things about setting up a 529 Savings Plan with CollegeInvest is its flexibility.
What if my son decides not to go to school? What if my granddaughter is fortunate to receive a full scholarship? What if they pull out of school mid-term? You can change your beneficiary at any time without penalty, and even name yourself as the beneficiary.
Anyone Can Contribute
The flexibility of a CollegeInvest savings plan extends beyond ownership: anyone, regardless of their relationship to the beneficiary or the account owner, can make a contribution to your CollegeInvest account. As an added bonus, if they are a Colorado resident they are eligible for the dollar-for-dollar state tax deduction¹ for their contributions made directly to your account.
This can easily be done through the use of Ugift, a free-to-use service that allows you to invite family and friends to make contributions in lieu of traditional gifts.
Savings Can Be Used for More Than Tuition
While tuition is arguably the most expensive part of earning a college degree, it’s merely one of many expenses. With a CollegeInvest savings plan, your savings can also be applied to room and board, and required books supplies and fees.
Finally, don’t wait. Time is on your side while your child or grandchild is young. Within minutes, you can open an account online and start saving to meet your goal for them. Our website is full of information. And because we know that not every family’s needs are the same, we offer you one of the broadest offerings of plans in the country to meet your goals.
² Contributions are deductible for Colorado residents in the tax year of the contribution(s), up to your Colorado income tax for that year. Deductions are subject to recapture in subsequent years in which non-qualified withdrawals are made.
³ The earnings portion of a non-qualified withdrawal is subject to federal income tax and any applicable state income tax, as well as an additional 10% federal penalty tax.