529s Insights
Coverdells vs. 529 Plans
Both Coverdell and 529 Plans can be great vehicles for college savings, however,...
Colorado offers three 529 college savings plans. CollegeInvest Direct Portfolio College Savings Plan is a traditional college savings plan along with the CollegeInvest Stable Value Plus plan, and Scholars Choice College Savings Program is an advisor-sold tuition plan.
ScholarShare College Savings Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.
Type: Direct – this Colorado 529 plan can be purchased directly.
Fund Family: The Vanguard Group
Minimums: To get started you can deposit $25. The minimum subsequent contribution to this Colorado 529 plan is $15.
Maximum Contributions: Currently, you can contribute until the balance per beneficiary reaches $350,000. Of course, your total amount in the plan can be higher as your investments grow. 529 plans typically increase the contribution limit over time, so you may be able to contribute more.
Tax Benefits: Good news for Colorado residents — every dollar contributed to the plan can be deducted from your taxable income up to your Colorado taxable income for hte year. You also get federal income tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal tax benefits.
Other Benefits: Through your CollegeInvest Direct Portfolio College Savings Plan, you have the option to be a part of a reward program set up by Upromise®. By making purchases with your card, the reward program offers a percentage of purchases that convert into rewards points, and ultimately convert into account contributions. Also, for Colorado residents, a matching grant applies. Eligible account holders can receive a $1 for $1 grant up to $500, for up to 5 consecutive years.
Residency: CollegeInvest Direct Portfolio College Savings Plan is open to all United States residents, not just those in Colorado.
You can learn more about the this 529 plan at the official web site.
Colorado’s CollegeInvest Stable Value Plus 529 is a conservative investment option for saving for college. It guarantees a minimum 2.0% return (before fees).
Type: Direct – this Colorado 529 plan can be purchased directly.
Fund Family: MetLife
Minimums: The minimum to open an account is $25, as is the minimum contribution.
Maximum Contributions: Currently, you can contribute to your Colorado 529 plan until your account balance reaches $280,000. Of course, your total amount in the plan can be higher as your investments group. 529 plans typically increase the contribution limit over time, so you may be able to contribute more.
Tax Benefits: Every dollar contributed to the plan can be deducted from your taxable income up to $350,000 in a year. You also get federal income tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal tax benefits.
Other Benefits: For Colorado residents, a matching grant applies. Eligible account holders can receive a $1 for $1 grant up to $500, for up to 5 consecutive years.
Residency: The CollegeInvest Stable Value Plus College Savings Plan is open to all United States residents, not just those in Colorado.
You can learn more about the this 529 plan at the official web site.
Colorado’s CollegeInvest Smart Choice 529 is a conservative investment option for saving for college.
Type: Direct – this Colorado 529 plan can be purchased directly.
Fund Family: FirstBank (deposit account)
Minimums: There is no minimum contribution.
Maximum Contributions: Currently, you can contribute to your Colorado 529 plan until your account balance per beneficiary reaches $280,000. Of course, your total amount in the plan can be higher as your investments group. 529 plans typically increase the contribution limit over time, so you may be able to contribute more.
Tax Benefits: Every dollar contributed to the plan can be deducted from your taxable income up to $350,000 in a year. You also get federal income tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal tax benefits.
Other Benefits: For Colorado residents, a matching grant applies. Eligible account holders can receive a $1 for $1 grant up to $500, for up to 5 consecutive years.
Residency: The CollegeInvest Stable Value Plus College Savings Plan is open to all United States residents, not just those in Colorado.
You can learn more about the this 529 plan at the official web site.
The Scholars Choice College Savings Program is a traditional 529 plan and may be purchased through a financial advisor.
Type: Advisor. Please contact a financial advisor in your state for assistance.
Fund Family: Legg Mason
Minimums: Accounts are $250 to open, and the minimum subsequent contribution is $50.
Maximum Contributions: Currently, you can contribute until your account balance in your Colorado 529 plans reaches $350,000 for a given beneficiary.
Tax Benefits: Every dollar contributed to the plan can be deducted from your taxable income. You also get federal income tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal tax benefits.
Residency: The Scholars Choice 529 plan is open to all United States residents, not just those in Colorado.
You can learn more about the this 529 plan at the official web site.
Subscribe to receive FREE updates, insight, and more, straight to your inbox
529s Insights
Both Coverdell and 529 Plans can be great vehicles for college savings, however,...
529s Insights
There are several quirks involving lifetime caps and maximum annual deposits. Read ahead...
529S INSIGHTS
Thanks to recent actions by the United States Congress, 529 plans enjoy permanent...
529S INSIGHTS
Here is a list of some of the commonly used terms that you...
529S INSIGHTS
Most parents who’ve looked into college savings have come across a company called...