Your Most Common Questions Answered

What is a 529 savings plan?

529 college savings programs are state-sponsored plans that were established to help families save money specifically for higher education expenses.

529s offer a variety of tax benefits leading financial experts to agree they’re one of the best ways to save for college.

Source: College Savings Foundation


NEW Enhancements to 529 savings plans for 2016

  • Computers, peripheral equipment, software, and internet access are now qualified expenses, as long as the beneficiary is the primary user while enrolled in school.

  • If you receive a refund from the school for payments made with a 529 plan, account owners can now re-contribute the refund to their account. The re-contribution must be made to the account within 60 days of receiving the refund to avoid paying any tax penalties for a non-qualified withdrawal. 

  • ​Beginning in July, the maximum contribution limit is $400,000. The aggregate balance of all accounts for the same beneficiary under all Colorado 529 Plans cannot exceed this limit.

Related Links:
For more information CLICK HERE
For definitions of computers, etc. CLICK HERE


General Information

Who can participate?
What if I don’t live in Colorado?
When can I open a CollegeInvest savings plan?... When is it too late?
What are the eligible expenses covered by a 529 plan?
What are the benefits of investing with CollegeInvest?

Beneficiary Information

What’s a beneficiary?
Can more than one student be the beneficiary of a single account?
Can parents and grandparents open two separate accounts for the same student?
Is my student required to go to college in Colorado?
What if my student doesn’t go to college?
What if my student gets a scholarship?
Will my account affect my student’s financial aid eligibility?
What if my student drops out, or reduces their full time status?

Account Information

How do I open an account?
Direct Portfolio College Savings Plan
Scholars Choice College Savings Program
Smart Choice College Savings Plan
Stable Value Plus College Savings Plan
How do I contribute to my account?
Are there minimum contribution requirements?
Can I change my investment options?
Will I get hit with a bunch of fees?
Can I check my account balance online?

Making Withdrawals

How can account savings be used?
What schools are eligible?
What if my student only wants to go half-time?
What if I really need that money for something other than college?
I won’t take the money out for something else. How do I make a qualified withdrawal?
Do I have to pay taxes on withdrawals?
Can I make a withdrawal from my Upromise account if it is not linked to my CollegeInvest account?

1 Contributions to the Plan(s) are deductible from Colorado state income tax in the calendar year of the contribution, up to your Colorado taxable income for that year.  Such deductions are subject to recapture in subsequent years in which non-qualified withdrawals are made.
2 The earnings portion of a non-qualified withdrawal is subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal penalty tax.
3 Smart Choice College Savings Plans are not insured by CollegeInvest, the State of Colorado, or its agencies. However, these funds are FDIC-insured in accordance with the current FDIC coverage limits.
4 Restrictions apply. Please see the Plan Disclosure Statements.
5 The earnings portion of a non-qualified withdrawal is subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal penalty tax.
6 A plan of regular investment cannot assure a profit or protect against a loss in a declining market.
7 Contributions to the Plan(s) are deductible from Colorado state income tax in the calendar year of the contribution, up to your Colorado taxable income for that year.  Such deductions are subject to recapture in subsequent years in which non-qualified withdrawals are made.
8 The earnings portion of a non-qualified withdrawal is subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal penalty tax.

 

Important Considerations
To learn about CollegeInvest’s 529 program, its objectives, risks, charges, expenses, limitations, restrictions and qualifications regarding the program's benefits and potential tax advantages, please read and consider carefully the Plan Disclosure Statements (PDS) available at www.collegeinvest.org before investing. Also, check with your or your beneficiary’s home state to learn if it offers tax or other benefits for investing in its own plan. Administered and issued by CollegeInvest.

Investments are not guaranteed by CollegeInvest, the State of Colorado, its agencies, The Vanguard Group, Inc., Ascensus College Savings, QS Legg Mason Global Asset Allocation, LLC, or FirstBank, and may lose value, including principal amount invested. The guarantee of Stable Value Plus College Savings Plans is the obligation of Brighthouse Life Insurance Company, formerly known as MetLife Insurance Company USA, and only to the extent of the Funding Agreement. Smart Choice College Savings Plans are not insured by CollegeInvest, the State of Colorado, or its agencies. However, these funds are FDIC-insured in accordance with the current FDIC coverage limits.

Capacity of Dealer and Other Parties
CollegeInvest is the issuer of plan securities and is the trustee of the plans in accordance with Colorado law. CollegeInvest also oversees the Managers' activities and provides certain administrative services, such as marketing, audit, and financial statements, in connection with the plans.

Ascensus Broker Dealer Services, Inc. and Ascensus College Savings Recordkeeping Services LLC serve as Plan Manager for the CollegeInvest Direct Portfolio College Savings Plan and has overall responsibility for the day-to-day operations. The Vanguard Group, Inc. also serves as Plan Manager and Investment Manager for the CollegeInvest Direct Portfolio College Savings Plan, and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists CollegeInvest with marketing and distributing the Direct Portfolio Plan. The Direct Portfolio Plan’s portfolios, although they invest in Vanguard mutual funds, are not mutual funds and you could lose money by investing in the plan. Vanguard Marketing Corporation, Distributor and Underwriter.

QS Legg Mason Global Asset Allocation, LLC, Investment Manager for the CollegeInvest Scholars Choice College Savings Program. Legg Mason Investor Services, LLC is the primary distributor of interest in the Program; together they serve as Manager of the Program.

FirstBank serves as the Plan Manager for the CollegeInvest Smart Choice College Savings Plan and has overall responsibility for the day-to-day operations, including effecting transactions.  FirstBank also assists CollegeInvest with marketing and distributing the CollegeInvest Smart Choice College Savings Plan.  FirstBank - Member FDIC.

Brighthouse Life Insurance Company serves as the Investment Manager for the CollegeInvest Stable Value Plus College Savings Plan. CollegeInvest has overall responsibility for the day-to-day operations, including effecting transactions.

CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest. CollegeInvest Direct Portfolio College Savings Plan, Scholars Choice, CollegeInvest Smart Choice College Savings Plan, and CollegeInvest Stable Value Plus College Savings Plan are registered service marks of CollegeInvest. Vanguard is a trademark of The Vanguard Group, Inc. Ascensus College Savings is a trademark of Ascensus, Inc.