529 education for your team

Yes. Employers can contribute directly to an employee’s CollegeInvest 529 account. For every dollar you contribute, your company receives a 20% Colorado state income tax credit, up to $500 per employee, per year. That means a $2,500 contribution per employee earns you the full $500 credit.

Colorado Form DR 0289 — “Employer Contributions to Employee 529 Qualified State Tuition Program.” Your tax professional can file it with your annual Colorado business tax return.

There’s no limit on what you can contribute — but the tax credit caps at $500 per employee, per year (reached with a $2,500 contribution).

No. You choose who receives contributions and how much. There are no ERISA requirements or nondiscrimination rules to worry about — contribute to one employee, a few, or your whole team.

No. Any size company can participate — from solo operations to large enterprises.

Yes. There are no restrictions on business type (S-Corp, LLC, sole proprietor, etc.) or company size. Whether the employer tax credit or the standard Colorado state income tax deduction is more advantageous for you depends on your specific situation — we recommend consulting a tax professional.

Yes. Employer contributions are treated as wages and are subject to standard payroll taxes and withholdings, just like salary.

To qualify for the tax credit, the contribution must go into an account where your employee is the Account Owner. If their spouse or another family member owns the account, it won’t meet the requirement — but your employee can open a new 529 in their own name in just a few minutes. We’re happy to walk them through it.

Deposits typically appear in the employee’s account about two weeks from the date we receive your funds.

Immediately. Once deposited, funds are fully vested and belong to the employee’s Account Owner.

It’s completely up to you. Common approaches include matching employee contributions, giving one-time bonuses, or recognizing milestones like a new baby, a work anniversary, or a graduation. Start small, stay flexible, and adjust as you go.

Education costs are a top financial stressor for working adults, and most Colorado families say they’re already saving as much as they can. Employers are stepping in because it matters to their teams — and because it works. Meaningful support drives retention, strengthens culture, and signals real investment in the people who show up every day.