Our sales team can answer your questions on how to use 529 plans with your clients.
What is First Step?
The First Step Program by CollegeInvest is a free jump-start college saving program for every Colorado newborn, made possible by the Colorado legislature through a 2019 bill that created Child Starter Accounts (CSA). Through this program, any Beneficiary born or adopted in the state of Colorado on or after January 1, 2020, will receive a free $100 gift contribution to their CollegeInvest College Savings Account to help them get started on their way to saving for their higher education.
What is the First Step Match?
Once you receive the $100 from First Step, we’ll match your future contributions dollar-for-dollar, up to $500 per year for the next 5 years.
Can I use my savings for K-12 expenses?
The Tax Cuts and Jobs Act of 2017 expanded the qualified use of 529 savings accounts by allowing withdrawals for K-12 tuition expenses. Section 529 of the federal tax code sets the general rules of qualified tuition programs, which authorizes each state to administer its own program and determine its unique state tax treatment and other policies.
In Colorado, the intent of the state’s 529 college savings plan, CollegeInvest, is to encourage savings for higher education. Colorado tax law remains unchanged and CollegeInvest 529 plans can only be used for qualified higher education expenses. Any other use, including K-12 tuition expenses, are considered non-qualified withdrawals and subject to recapture.
How can I access my client’s account information?
For Direct Portfolio accounts, you will need to make sure you have client viewing privileges. For advisor access, use these forms: DP LPOA/Agent Auth AND Org Res Form. Please call us at 303-376-8839 should you need any assistance.
To view your Scholar’s Choice or Direct Portfolio accounts
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Do I need a sales agreement? How do I set one up?
To be able to sell Scholars Choice, you will need to have an up to date selling agreement completed and approved by Nuveen. Depending on how your practice is set up will determine the selling agreement which is right for your organization. Please contact firstname.lastname@example.org and ask to be set up as a new financial professional.
Who is CollegeInvest?
We are a not-for-profit division within the Colorado Department of Higher Education, here to help everyone who wants to get a college education achieve that goal through the use of tax advantaged 529 college savings plans. For financial professionals we provide expert information, unbiased sales strategies and free continuing education credits to help you better connect with the families you work with. We currently provide 4 different savings plans to meet the varying needs of Colorado families. And, our Matching Grant Program is designed to help qualifying middle to lower income families save for higher education. The Colorado Department of Higher Education (DHE) has oversight and management responsibilities over the division. In addition, there is an Advisory Board of Directors appointed by the Governor and confirmed by the State Senate. CollegeInvest is a self-supporting state enterprise and does not receive taxpayer funding.
For additional information click here.
How does the corporate plan work?
Corporate plans allow an employer to receive up to a 20% tax credit if they make employer contributions into an employee’s 529 plan. There is a maximum $500 tax credit per employee.
Can a sole proprietorship or LLC participate in the corporate plan?
Yes, any type of business platform can participate in the corporate plan and its benefits.
What are the steps of opening a Scholars Choice corporate plan?
To open a Scholars Choice corporate plan, you and your client will need to fill out the EMPLOYER: Corporate Authorization Agreement and an application form. If their employees are planning on making their own contributions, you will need to also fill out the EMPLOYEE: Company Account Application Form. You can find these under the forms section. If your client is planning on making employer contributions, they will also need to enroll in the Employer Portal to record their contributions. To enroll in the Employer Portal click here. Once the account is set up, all employer contributions need to be sent to 1600 Broadway, Suite 2300 Denver, CO 80202.
What are the steps of opening a Direct Portfolio corporate plan?
To open a Direct Portfolio corporate plan, there is no paperwork that needs to be completed. If your client is planning on making employer contributions, they will need to enroll in the Employer Portal to record their contributions. To enroll in the Employer Portal click here. Once the account is set up, all employer contributions need to be sent to 1600 Broadway, Suite 2300 Denver, CO 80202.