For those living in Colorado and wanting to save for college via a 529 plan, College Invest® is the only one that will allow you a deduction on your Colorado state tax return (think automatic 4.63% return on investment). For those that qualify, a dollar-for-dollar contribution match up to $500 might be available (who doesn’t like free money?). Full FAQ’s are found here but the highlights are:
- Must be a Colorado resident
- The Beneficiary (child, grandchild, etc) must be 12 years old or younger at the time of the initial application
- You must be able to claim the Beneficiary as a dependent for federal income tax purposes
- There is an income eligibility based on household size and AGI
- Applications for the 2018-2019 matching grant program are accepted now through December 14, 2018
Let me know if you are able to take advantage of this grant!
For more information about 529 plans and how to maximize tax savings with Education credits available, check out this post.
529 plans may now be used for qualified K-12 expenses. Check out this post for more information.