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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 mmarshall@collegeinvest.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.