[\/et_pb_text][et_pb_text module_class=”text-link” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
general information<\/a><\/p>\n how do I open an account?<\/a><\/p>\n beneficiary information<\/a><\/p>\n investment options<\/a><\/p>\n contributions<\/a><\/p>\n making withdrawals<\/a><\/p>\n gifting & estate planning benefits<\/a><\/p>\n<\/div>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”FAQ No Background” module_class=”faq-wrapper faq-content” _builder_version=”4.16″ animation_style=”slide” animation_direction=”bottom” animation_duration=”2000ms” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”General Information(Headline)” module_id=”section-1″ module_class=”headline” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][cumo_faq_item question=”What are the benefits of investing with CollegeInvest? ” icon=”<\/i>” admin_label=”What are the benefits of investing with CollegeInvest?” _builder_version=”4.17.3″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n For Colorado taxpayers, contributions to ANY CollegeInvest savings account are eligible for a deduction from your Colorado state income tax return\u00b9<\/em>.<\/p>\n Whether you are a Colorado resident or not, the earnings on a 529 savings account can grow federal and state tax-free if used for eligible expenses\u00b2<\/em><\/strong>.<\/p>\n Your savings can be used for qualified higher education expenses at any eligible college, university, community college, trade, or vocational school, or apprenticeship in the country. Even internationally.<\/p>\n Should your Beneficiary get a scholarship or not attend school, you can change the Beneficiary at any time with no penalty to the account.<\/p>\n CollegeInvest offers one of the broadest range of investment options to meet your needs regardless of your saving and investment preferences. Including Colorado\u2019s only FDIC insured<\/strong> <\/em>529 savings plan\u00b3<\/em><\/strong> eligible for the state\u2019s tax deduction<\/em><\/strong> for contributions, and a stable value plan that guarantees a minimum annual rate of return, currently at 1.79% for calendar year 2022\u2074.<\/p>\n You can enroll directly in the Direct Portfolio Plan, the Smart Choice Plan, or the Stable Value Plan. \u00b9 Contributions are deductible from Colorado income tax for Colorado taxpayers in the calendar year of the contribution up to your Colorado taxable income that year and subject to recapture in subsequent years in which nonqualified withdrawals are made.<\/em><\/p>\n \u00b2 The earnings portion of a nonqualified withdrawal<\/strong> is subject to state and federal income taxes, as well as an additional 10% federal penalty.<\/em><\/p>\n \u00b3 The Smart Choice College Savings Plan<\/strong> is not insured or guaranteed by CollegeInvest, its Plan Managers, the State of Colorado, or its agencies. However, these funds are FDIC insured<\/strong> in accordance with the current FDIC coverage limits.<\/em><\/p>\n \u2074 The guarantee of the Stable Value Plus Plan is the obligation of Nationwide and only to the extent of the Funding Agreement.<\/em><\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Who can participate?” icon=”<\/i>” admin_label=”Who can participate?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Parents, grandparents<\/a>, other relatives, even friends! There are no age or income restrictions to owning a CollegeInvest account. Nor do you have to be a Colorado resident or taxpayer.<\/p>\n In fact, you could open an account for yourself. If you\u2019re seeking an advanced degree, looking for additional certification, wanting to finish college, or simply trying to keep up with new technology a CollegeInvest college savings plan can get you there.<\/p>\n You can open as many accounts as you want. YOU control who receives the funds, when they\u2019re withdrawn, and for what expenses. You can change the Beneficiary at any time.<\/p>\n Nor are there any restrictions on the number of accounts per Beneficiary.<\/p>\n Also, anyone can contribute to your account. Learn more about Friends and Family gifting here.<\/a><\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”When can I open a CollegeInvest 529 savings plan?” icon=”<\/i>” admin_label=”When can I open a CollegeInvest savings plan?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Today. Tomorrow. Anytime. Every dollar you save can help, whether your goal is to cover tuition and room and board or books, computers, fees, and some tuition.<\/p>\n But it\u2019s best to begin when your child is young, as your savings have the opportunity to increase over a longer period of time. For example:<\/p>\n If you were to start saving when your child is 2 years old, putting aside $50\/month for 16 years with a 5% return, you could have potentially achieved $14,576 in total savings. If you were to wait until they were 5 years old, your savings would be 25% less.<\/p>\n Even if your child is approaching or already in high school, he or she can benefit from a CollegeInvest savings account to complement other financial aid funding sources such as grants, scholarships, and loans.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”What are the eligible expenses covered by a 529 plan?” icon=”<\/i>” admin_label=”What are the eligible expenses covered by a 529 plan?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/cumo_faq_item][cumo_faq_item question=”What schools are eligible for savings plans?” icon=”<\/i>” admin_label=”What schools are eligible?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Funds can be used at postsecondary educational institutions participating in a student aid program administered by the U.S. Department of Education, including:<\/p>\n For the most recent list of eligible schools, CLICK HERE<\/em><\/strong><\/a><\/p>\n Here are a few examples of schools you can use your CollegeInvest 529 College Savings Account that you might not have thought of:<\/p>\n [\/cumo_faq_item][cumo_faq_item question=”Where can I find information about how much to save for college?” icon=”<\/i>” admin_label=”Where can I find information about how much to save for college?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n You can find helpful information about how much to save for college here.<\/a><\/p>\n You can also find a helpful calculator here.<\/a><\/p>\n<\/div>\n [\/cumo_faq_item][et_pb_button button_url=”#top” button_text=”Back to top” admin_label=”Button Back To Top” module_class=”button-btt button-underline back-top” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”How do I open an account?(Headline)” module_id=”section-2″ module_class=”headline” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][cumo_faq_item question=”Name the Account Owner” icon=”<\/i>” admin_label=”Name the Account Owner” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Anyone who is a U.S. citizen or resident alien with a SSN or taxpayer identification number can be an account owner. You, your Spouse, a Grandparent, an Aunt or Uncle, a Friend! There are no age, income, or family member restrictions to own an account. However, there can only be ONE Account Owner per account. You, or they, will need their date of birth, SSN, and a current permanent U.S. address that is not a PO Box.<\/p>\n There is no limit on the number of accounts held by an Account Owner.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Name the Beneficiary” icon=”<\/i>” admin_label=”Name the Beneficiary” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n A Beneficiary is the Student who will receive the benefit of the savings account for their qualified college expenses. It is not necessary that they be related to you, nor are there any age, income, or residency requirements. You can even name yourself as the Beneficiary. You can change the Beneficiary at any time. There can only be ONE Beneficiary per account. There is no restriction on the number of accounts per Beneficiary.<\/p>\n To open an account, you will need their SSN, date of birth, and a permanent U.S. address that is not a PO Box.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Name a Successor (Optional)” icon=”<\/i>” admin_label=”Name a Successor (Optional)” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n You have the option of naming a Successor on the account. If you do not, the Beneficiary becomes the Account Owner in the event of your death.<\/p>\n If you are going to name a Successor, you will need their SSN and a permanent U.S. address that is not a PO Box.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”How much are you going to save and how often?” icon=”<\/i>” admin_label=”How much are you going to save and how often?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n To activate your account, you will need to make an initial contribution to the plan. You can open a CollegeInvest account with as little as $25 and in virtually any manner available: cash, check, bank transfer, direct deposit, or certain rollovers.<\/p>\n If you are going to make the initial contribution by transfer, you will need your bank account number and the bank’s routing number (and possibly a voided check.)<\/strong> You also have the opportunity to set up an automatic savings plan, or direct deposit, for continuing contributions to your account. You will need the specific bank\/credit union\/money market account information to complete the process.<\/p>\n Nearly half of our account owners enroll in an ongoing process for contributing to their accounts – it’s simple, and they know they’re adding to their potential savings-effort and stress-free.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Select a Plan and Enroll” icon=”<\/i>” admin_label=”Select a Plan and Enroll” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/cumo_faq_item][et_pb_button button_url=”#top” button_text=”Back To Top” admin_label=”Button Back To Top” module_class=”button-btt button-underline back-top” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Beneficiary Information(Headline)” module_id=”section-3″ module_class=”headline” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][cumo_faq_item question=”What is a Beneficiary?” icon=”<\/i>” admin_label=”What is a Beneficiary” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n A Beneficiary is the person of your choosing who is entitled (by the Account Owner) to the benefits of the savings. They must be a U.S. citizen or alien resident with a SSN or valid taxpayer identification number. But there can only be ONE Beneficiary per account. There are no restrictions on the numbers of accounts for a specific Beneficiary. There are no age restrictions on the Beneficiary. The Account Owner does not need to be related to the Beneficiary. You can even name yourself as the Beneficiary.<\/p>\n They can be your son or daughter, a grandchild, stepchild, a favorite niece or nephew, or even yourself! The technical list is very broad.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Can parents and grandparents open separate college savings accounts for the same student?” icon=”<\/i>” admin_label=”Can parents and grandparents open separate accounts for the same ” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Yes; in fact, this is quite common. There are no restrictions on the number of accounts for a specific Beneficiary. Learn about 529 Plans for grandparents here<\/a>.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Can I change my Beneficiary?” icon=”<\/i>” admin_label=”Can I change my Beneficiary?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Absolutely, and at any time. Just log in to your account and complete the required form, or contact your Plan Manager directly.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Is my student required to go to college in Colorado?” icon=”<\/i>” admin_label=”Is my student required to go to college in Colorado?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n No. You may use your funds at any eligible public or private college, university, community college, vocational or trade school across the country \u2013 even internationally.<\/p>\n See a list of eligible schools here.<\/a><\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”What if my student doesn’t go to college, or withdraws?” icon=”<\/i>” admin_label=”What if my student doesn’t go to college, or withdraws?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n You have three options:<\/p>\n You can simply leave the funds in the account should he\/she decide to go back to learning. You can change the Beneficiary to another family member, or even yourself.<\/p>\n Or, you can withdraw the funds, subject to the tax consequences for nonqualified withdrawals. Generally, the earnings are subject to federal and state income taxes and a 10% penalty, and the possible recapture of any state income tax deductions.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”What if my student gets a scholarship?” icon=”<\/i>” admin_label=”What if my student gets a scholarship?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n You have four options:<\/p>\n You can use your funds to cover other eligible expenses, like room and board, books, supplies, computer\/computer equipment, software, or internet access that some scholarships don’t cover. You can change the Beneficiary to another family member, or even yourself.<\/p>\n Simply leave the funds in the account for use for other eligible higher education expenses at a later time.<\/p>\n Or, you may withdraw funds from your account equal to the scholarship amount without incurring the 10% federal penalty on the earnings portion. The earnings portion of your withdrawals may still be subject to state and federal income taxes. (You should carefully read the Plan’s Plan Disclosure Statement, or consult a tax advisor for your specific situation.)<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Will my 529 account affect my student’s financial aid eligibility?” icon=”<\/i>” admin_label=”Will my account affect my student’s financial aid eligibility?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n While any assets you or your student own will affect financial aid, 529 savings plans have some benefits over other savings accounts. 529s are generally viewed as a parental asset if the parent is the account owner. So the funds in a 529 account are weighed less heavily than other accounts owned by the student in the federal formula used by colleges to determine financial need.<\/p>\n If a grandparent owns the account and makes withdrawals for a student’s expenses, the student may have to report assets used as income the following year.<\/p>\n Note, however, that financial aid provided by a college or university may differ from federally determined financial aid.<\/p>\n<\/div>\n [\/cumo_faq_item][et_pb_button button_url=”#top” button_text=”Back To Top” admin_label=”Button Back To Top” module_class=”button-btt button-underline back-top” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”row-hide” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Investment Options(Headline)” module_id=”section-4″ module_class=”headline” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][cumo_faq_item question=”Can I change my investment options?” icon=”<\/i>” admin_label=”Can I change my investment options?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n You can change the investment option for all or a portion of your assets for any reason no more than two times during any calendar year without incurring tax consequences or penalties.<\/p>\n For example: You currently have $5,000 in a conservative fund option but want to move the money to an aggressive fund option, possibly because the stock market may be stronger at the time. You are allowed to change your investment option (called a reallocation) twice per calendar year.<\/p>\n This limitation applies on an aggregate basis to all accounts having the same Account Owner and the same Beneficiary.<\/p>\n Regarding Account Transfers: You can transfer assets from one 529 plan to another (thereby changing investment options) for the same Beneficiary once per 12 month period. (Check with your plan for any restrictions on moving accounts within a plan.)<\/p>\n Regarding a Change in Beneficiary: You may also make a reallocation anytime you change Beneficiaries, subject to limitations regarding changing a Beneficiary. (Carefully review your Plan Disclosure Statement.)<\/p>\n Please note, each situation is unique, and you should carefully review the Plan Disclosure Statement to understand the limitations and the potential tax consequences. Or consult with your tax advisor for your specific situation.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Are there fees related to my investment choices?” icon=”<\/i>” admin_label=”Are there fees related to my investment choices?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Maintenance fees for our plans range from 0-4% annually, but the vast majority of accounts average less than 1% each year. The most current fee information is detailed in the Plan Disclosure Statement (PDS) for your specific plan.<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”What is an Age-Based Option?” icon=”<\/i>” admin_label=”What is an Age-Based Option?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Generally referred to as a \u201cset it and forget it\u201d approach where the asset mix automatically changes as the Beneficiary gets older. The changes are automatic so the owner doesn\u2019t have to worry about managing the direction of their investment over time.<\/p>\n \u200b<\/p>\n Our DIRECT PORTFOLIO<\/strong><\/a> offers you three choices \u2013 Conservative, Moderate, or Aggressive – based on your risk preference.<\/p>\n The SCHOLARS CHOICE PLAN<\/strong><\/a> offers a variation of this concept: Enrollment Year Investment Portfolios. These portfolios base their investment mix on the first year that the student is expected to pay for qualified expenses, automatically shifting from aggressive to conservative as the enrollment year approaches.<\/p>\n<\/div>\n [\/cumo_faq_item][et_pb_button button_url=”#top” button_text=”Back To Top” admin_label=”Button Back To Top” module_class=”button-btt button-underline back-top” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Contributions(Headline)” module_id=”section-5″ module_class=”headline” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][cumo_faq_item question=”How do I contribute to my college savings account?” icon=”<\/i>” admin_label=”How do I contribute to my account?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n It’s so easy! Generally, you can contribute by:<\/p>\n [\/cumo_faq_item][cumo_faq_item question=”Are there minimum contribution requirements?” icon=”<\/i>” admin_label=”Are there minimum contribution requirements?” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n DIRECT PORTFOLIO, SCHOLARS CHOICE, STABLE VALUE PLUS<\/strong><\/p>\n SMART CHOICE<\/strong><\/p>\n If you\u2019re participating in our First Step program, you can open a plan with $0 and use your initial First Step award to fund! Choose your plan. When you get to Initial Contribution during the enrollment process, simply check the box for \u201cPersonal Check\u201d. We\u2019ll do the rest and deposit $115 into your account after you enroll in First Step!<\/p>\n<\/div>\n [\/cumo_faq_item][cumo_faq_item question=”Is there a maximum limit on contributions?” icon=”<\/i>” admin_label=”Is there a maximum limit on Contributions?” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n The maximum contribution limit across all CollegeInvest 529 plans for the same Beneficiary is $500,000. Once the aggregation of all account balances meets or exceeds this limit, additional contributions are prohibited but the account may still continue to accrue earnings.<\/p>\n For some Account Owners, this is a significant estate planning benefit in that contributions to 529s are considered completed gifts and therefore removed from their estate.<\/p>\n<\/div>\nGeneral 529 Information<\/h2>\n
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The Scholars Choice is available only through your financial advisor.<\/p>\n![\"\"](\"https:\/\/e4iwtod4d46.exactdn.com\/wp-content\/uploads\/2025\/11\/529-Qualified-vs.-Non-Qualified-Expenses-Chart-1024x878.png?strip=all&lossy=1&ssl=1\")
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How do I open a college savings account?<\/h2>\n
Beneficiary Information?<\/h2>\n
529 College Savings Plan Investment Options<\/h2>\n
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Making Contributions<\/h2>\n
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