Working Families College Savings Act
On May 29, 2018, Governor Hickenlooper signed the Working Families College Savings Act (HB18-1217 https://leg.colorado.gov/bills/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.
- What does this new legislation do?
This new legislation incentivizes employers to get involved with their employee’s savings goals for higher education by giving the employer a tax credit.
- How does the tax credit work?
For every dollar an employer contributes to an employee’s CollegeInvest 529 account, the employer receives a 20% tax credit, up to a maximum of $500 per employee per year. So, an employer could give up to $2,500 per employee and receive $500 for each person.
- Why should I add this as a new benefit?
Colorado families tell us that they’re already saving as much as they possibly can. This is a great new option that can be added to your benefit package to help attract and retain the best talent. You can help be part of their future!
- What options do I have to contribute to my employee’s account?
One of the great things about this new law is the flexibility it gives to employers. It could be structured as a match, like some retirement plans. It can be done one time, annually, or each pay period. Maybe it’s a better way to celebrate the birth or adoption of an employee’s child than a gift card. A reward for a long-time employee or part of a welcome package for a new hire. Did you know that almost anyone can be a beneficiary? It could be an employee’s child, grandchild, niece, nephew or other family member. Or for the employee themselves if they want to complete a degree or pursue other higher education options.
- Is there a minimum/maximum contribution?
Some plans have very low minimum contributions (like $25). Employers can give as much as they’d like, but your tax credit is maxed out at $2,500 contributed per employee.
- Can I contribute directly to my employees’ 529 accounts?
Yes! It’s very easy and our team can help you with the details.
- How do I implement this program?
Call (303) 376-8856 or email firstname.lastname@example.org and Melissa Marshall will set up a time to walk you through the program and give you some great tips on how to implement it.
- Is there a minimum number of employees needed to participate?
No. Any size company can participate.
- How do I communicate to my staff about this new benefit?
Let us host a lunch and learn at your office to educate your staff about CollegeInvest.
We can also help you with materials, copy for e-blasts, break room posters, flyers, etc.