Save for College with 529 Colorado Collegeinvest Plans

Do you live in Colorado and are interested in the 529 Colorado Collegeinvest Savings Plans? Well you have come to the right place. In this post, we will discuss all you need to know about the 529 Colorado Plan.

Before we get into 529 Colorado Collegeinvest Plans, we’ll take a look at the 529 plans. If you haven’t already, check out our post on How 529 College Savings Plans can pay for your degree. Under section 529 of Internal Code Revenue, every state and District of Columbia is bound to offer at least one college savings plan. College saving plans under 529 are tax-advantaged savings plans utilized for qualified education. In legal terms, they are known as “qualified tuition plans.”

Beneficiaries of these plans can save money in these accounts for college education, and the savings will be tax-exempted.

While every state offers one type of 529 plans, Colorado offers 4 types of 529 plans.

529 Colorado Plans

If you are a Colorado resident and want to save for your child’s future education, then you have options of four types of 529 Colorado plans.

Three types of 529 Colorado college savings plans are direct-sold, while one type of 529 Colorado college savings plans are advisor-sold.

529 Colorado Direct-Sold College Savings Plans

The direct portfolio has 3 options for 529 Colorado College savings plans. We will look into each of the three and learn about them.

Collegeinvest Direct Portfolio College Savings Plans

This plan is a traditional plan, and the majority of the residents opt for this plan. As a Colorado resident, you can invest in CollegeInvest savings plans and reap tax benefits when you withdraw your savings for paying qualified education tuition fees.

It is a very convenient option since you can open an account in a couple of minutes. You just need to deposit $25 for account opening, and after that, you can deposit a minimum amount of $15. The maximum limit of savings is $400,000.

Tax benefits in CollegeInvest college savings plans include, Savings grows as tax-exempted, all state and federal income tax are exempted on these savings. If any of your relatives or any other person invest in this plan, they can get a tax break on their Colorado tax payable income if they are a Colorado Taxpayer.

You can save up to $400,000 under a single beneficiary, though the limit could be increased over time.

The team of Ascensus Brokers and the Vanguard Group deals with this plan. The plan is sold directly to investors.

CollegeInvest Smart Choice College Savings Plan

This is another type of 529 Colorado direct-sold college savings plan. This plan has two options. A 1-year time savings account, and another one is the money market-saving option. This is the only 529 Colorado plan which is insured by Federal Deposit Insurance Corp.

If you choose money market savings to account, you can deposit or withdraw at any time. But, if you want to benefit from high-interest rates without investing in high-risk options, then you can choose a 1-year time account. You can lock your savings for any period.

Tax benefits include savings grow as tax-exempted income.

While in the case of other state residents, some state and federal taxes can still be charged or may achieve some tax benefits.

CollegeInvest Stable Value Plus College Savings Plan

This is the third option available under the 529 Colorado direct-sold college savings plans. You only have one option in this plan. The fundamental purpose of this plan is to ensure a return on your principal investment. The return of return is revised each year in December.

1.5% is the minimum rate of return, and the revised rate of return cannot go below this percentage. The rate of return for 2019 is 2.49%.

As a resident of Colorado, if you invest in this plan, you will get tax exemption on income growth. Upon withdrawal of savings for qualified educational expenses, no tax will be charged.

The minimum contribution you will need to make is $25.

Nationwide® manages CollegeInvest Stable Value plus investment.

529 Colorado Advisor-Sold College Savings Plan

Under this type of 529 Colorado plan, one option is offered.

Scholars Choice College Savings Program

Qualified education is within your reach. The only thing you need is correct guidance. With the Scholars Choice College Savings Program, your scholar can guide you on how to start saving for a college education easily.

Scholars Choice from CollegeInvest and Legg Mason is among the most successful advisor-sold 529 plans across the nation. The Plan offers huge tax breaks, various investment options, and a functioning multi-administrator approach that settles on Scholars Choice a strong establishment when building a successful college savings plan.

In case you are willing to seek professional guidance for saving and investment options, then you can invest in this Scholar guided 529 Colorado plan. This plan offers a similar tax cut as the other 529 Colorado college savings plans.

The additional benefit of investing in a Scholar choice college savings program is you get a variety of investment options. With your scholar’s guidance, you can set a personalized investment plan.

This program offers individual portfolios for personalized investment strategy, and also plan’s allocated portfolios.

You can set up this account with an initial investment of as low as $250, accompanied by a subsequent deposit of $50.

An additional feature of this savings plan is you have full control and ownership of your account. Account’s beneficiary cannot withdraw any amount without your authorization.

The investments in Scholars choice college savings plan are managed by Legg Masson, who is a Global asset management organization.

One downside that accompanies this 529 Colorado college savings plan is you can lose money on the initial investment, and it does not guarantee a return on investment.

Benefits of 529 Colorado College Savings Plans


The first benefit you get with 529 Colorado plans is the flexibility of these college savings plans. You can change the beneficiary at any time. In case your child didn’t make it to college for some reason, then you can change the beneficiary of the account.

In case your child gets a scholarship, you can rollover funds in other 529 plans or change the beneficiary of the account.

Tax Benefits

You get the tax breaks in case you invest in 529 Colorado college savings plans. You will get tax benefit on every dollar you invest in 529 Colorado plan from your Colorado payable tax income.

When filing your tax return, you can directly deposit tax refunds to your 529 Colorado college savings plans.

No income restrictions

You can invest in 529 Colorado college saving plans without any prerequisite of a certain income level or age level.

So what next?

You live in Colorado, like what you have read thus far about the 529 Colorado College Savings Plans and want to take the next step.

You can start by heading over to to do so. Remember to do you research and make the decision that is best for you and your family.

That is all for now…take care!  

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