Register for Legislative Updates
Like you, we believe in the importance of saving for the future, and especially for education. The funds you set aside in your CollegeInvest 529 college savings account are a critical component on the educational path of you or your loved one.
At CollegeInvest we are honored to serve as stewards of your account, and work each day to ensure you are provided with the most up to date information regarding opportunities that may provide value, as well as external actions – such as legislative or regulatory changes – that may impact your 529 college savings account.
We offer this online resource so that you can learn more about proposed legislative or regulatory proposals that would impact your CollegeInvest 529 college savings account. From this site you can sign-up to receive periodic emails and read about current 529-related legislation. Register now and stay informed!
An Important Update on Colorado Legislation (February 19, 2018)
HB19-1123 Income Tax Deduction for 529 Account K-12 Expenses FAILED
A bill was introduced into the House that would’ve modified the Colorado state income tax deduction for contributions to a CollegeInvest 529 college savings account. It would’ve allowed a Colorado tax deduction for contributions in connection with qualified kindergarten through twelfth grade (K-12) education expenses including those for enrollment or attendance at a public, private, or religious school, and required that such withdrawals not be subject to state income tax recapture. It was heard in the House Education Committee on February 19th and failed of a 5-7 vote. 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 penalties. For more information from the Department of Revenue, click here.
An Important Update on Colorado Legislation (July 10, 2018)
Working Families College Savings Act
On May 29, 2018, Governor Hickenlooper signed the Working Families College Savings Act (HB18-1217) . This bipartisan bill is an innovative resource for Colorado employers to boost their employee’s CollegeInvest 529 college savings accounts. Beginning in January 2019, this legislation will provide a Colorado tax credit for employers who make contributions to CollegeInvest savings plans owned by their employees.
For more information, click here.
An Important Update on the Federal Tax Law Changes (October 15, 2018)
The Tax Cuts and Jobs Act of 2017
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 penalties.
Please feel free to contact us if you have additional questions in the meantime.