Compare 529 Plans

Summary

The team of Ascensus Broker Dealer Services, Inc. and The Vanguard Group manages the Colorado Direct Portfolio College Savings Plan. It features age-based and static portfolio options utilizing Vanguard mutual funds. Accounts can be linked to the Upromise rewards service.

Colorado's Scholars Choice Education Savings Plan (formerly known as Colorado Scholars Choice College Savings Program) is sold exclusively through advisors. The plan's management changed from Legg Mason to TIAA-CREF Tuition Financing, Inc. in July 2021. The plan features enrollment year, target allocation, and individual fund portfolio options.

Program type

Savings

Savings

How to enroll

Enroll directly with the program.

Enroll through a financial advisor.

Initial year of operation

2004

1999, substantially changed in 2021

State agency(ies)

CollegeInvest, a division of the Colorado Department of Higher Education

CollegeInvest, a division of the Colorado Department of Higher Education

Program manager

Ascensus Broker Dealer Services, Inc. and The Vanguard Group, Inc and College Invest.

TIAA-CREF Tuition Financing, Inc.

Program distributor

Vanguard Marketing Corporation

Nuveen Securities, LLC

State residency requirements

None

None

Who can be a participant/owner in the program?

U.S. citizens or resident aliens, trusts, 501(c)(3) organizations, and local governments.

U.S. resident individuals, UGMA/UTMA custodians, legal entities.

Significant time or age restrictions imposed by the program

None

None

Maximum contributions

Accepts contributions until all account balances in Colorado's 529 plans for the same beneficiary reach $500,000.

Accepts contributions until all account balances in Colorado's 529 plans for the same beneficiary reach $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.

Minimum contributions

The minimum initial contribution is $25, and the minimum subsequent contribution is $15.

The minimum initial contribution is $25, and the minimum subsequent contribution is $25. There is no minimum for accounts using payroll direct deposit.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

Age-based/Enrollment Year investment options

The Age-Based option is offered in 3 different risk levels (Aggressive, Moderate, and Conservative) each containing 9 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Ten Enrollment Year Investment options are based on a future enrollment year and invest in multiple underlying funds. The risk level of each portfolio becomes increasingly conservative over time as the beneficiary approaches expected enrollment in an eligible educational institution and/or expected year in which amounts will be withdrawn to pay for qualified higher education expenses.

Static investment options

Select among 5 multi-fund portfolios with varying risk tolerances and 3 individual-fund portfolios.

Four Target Allocation portfolios invest in multiple underlying funds and 14 individual funds invest in a single underlying fund.

Underlying investments

Vanguard mutual funds.

Dimensional Fund Advisors LP, Dodge & Cox Funds, Harris Associates L.P. (Oakmark Funds), Nuveen Fund Advisors, LLC, Principal Funds, Inc., Teachers Advisors, LLC, T. Rowe Price Associates, Inc., Western Asset Management Company, LLC, TIAA-CREF Life Insurance Company

Enrollment or application fee

None.

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee

$20 for accounts with less than $10,000, waived for Colorado residents and for accounts opting to receive all documents electronically.

None

Program management fees

0.29% manager fee; fee includes underlying fund expenses and a 0.06% fee to the state.
CollegeInvest may charge an administrative fee of up to 0.10%. CollegeInvest will periodically reevaluate the 0.06% administrative fee rate and raise or lower it not to exceed 0.10%.

0.10% administrative fee (0.04% temporarily waived on certain portfolios) to the state, 0.15% plan management fee, plus distribution/servicing fees of 0.25% (Class A), 0.75% (Class C), 0.00% (Class I).

Expenses of the underlying investments

Not applicable, 0.02% - 0.04% included in the program management fee.

Ranges from 0.15% to 0.30% (portfolio weighted average) in the enrollment year and target allocation portfolios; 0.05% to 0.75% in the individual portfolios.

Total asset-based expense ratio

0.29%

Class A: 0.38% - 1.25%
Class C: 0.38% - 1.75%
Class I: 0.38% - 1.00%
Note: Expenses are 0.04% less due to temporary state fee waiver.

Program match on contributions

The Matching Grant Program provides a dollar-for-dollar match of up to $500 in contributions for lower- to middle-income Colorado residents to accounts with an eligible beneficiary (a dependent under age 13 at the time of initial application). Applications are accepted each year between October 3 and December 29, 2023. The match can extend for a maximum five years. Matching grants for future years are subject to continued funding by the sponsor. In addition, First Step, a kickstarter savings program gives every child born or adopted in the State of Colorado, beginning on January 1, 2020, a $100 contribution to their CollegeInvest 529 college savings account. Offering more opportunities for Colorado families to save for college, CollegeInvest will also match a portion of their future contributions, up to $500 per year for five (5) consecutive years.

The Matching Grant Program provides a dollar-for-dollar match of up to $500 in contributions for lower- to middle-income Colorado residents to accounts with an eligible beneficiary (a dependent under age 13 at the time of initial application). Applications are accepted each year between October 3 and December 29, 2023. The match can extend for a maximum five years. Matching grants for future years are subject to continued funding by the sponsor. In addition, First Step, a kickstarter savings program gives every child born or adopted in the State of Colorado, beginning on January 1, 2020, a $100 contribution to their CollegeInvest 529 college savings account. Offering more opportunities for Colorado families to save for college, CollegeInvest will also match a portion of their future contributions, up to $500 per year for five (5) consecutive years.

State tax deduction or credit for contributions

For income tax year commencing on January 1, 2024, the Colorado income tax deduction otherwise available for contributions to any Colorado 529 plan or any 529 plan affiliated with an educational institution in Colorado shall not exceed $22,700 per taxpayer per beneficiary for a taxpayer who files a single return, or $34,000 per taxpayer per beneficiary for taxpayers who file a joint return. For income tax years commencing on or after January 1, 2025, the deduction limits described in the preceding sentence will be adjusted annually by the percentage change in the combined average annual costs of tuition and room and board for all Colorado institutions of higher education as determined by the Colorado Department of Education.

The Working Families College Savings Act offers a Colorado tax credit for employers who make contributions to CollegeInvest savings plans owned by their employees. The available tax credit is 20% of the amount contributed to a CollegeInvest 529 account, up to $500 per employee (for a $2,500 employer contribution).

For income tax year commencing on January 1, 2024, the Colorado income tax deduction otherwise available for contributions to any Colorado 529 plan or any 529 plan affiliated with an educational institution in Colorado shall not exceed $22,700 per taxpayer per beneficiary for a taxpayer who files a single return, or $34,000 per taxpayer per beneficiary for taxpayers who file a joint return. For income tax years commencing on or after January 1, 2025, the deduction limits described in the preceding sentence will be adjusted annually by the percentage change in the combined average annual costs of tuition and room and board for all Colorado institutions of higher education as determined by the Colorado Department of Education.

The Working Families College Savings Act offers a Colorado tax credit for employers who make contributions to CollegeInvest savings plans owned by their employees. The available tax credit is 20% of the amount contributed to a CollegeInvest 529 account, up to $500 per employee (for a $2,500 employer contribution).

State tax recapture provisions

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Colorado taxable income to the extent of prior Colorado tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship.

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Colorado taxable income to the extent of prior Colorado tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions

Qualified distributions from Colorado and non-Colorado 529 plans are exempt.

Qualified distributions from Colorado and non-Colorado 529 plans are exempt.

State tax treatment of rollovers

Colorado follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Colorado follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

To whom are distributions made payable

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Policy regarding participant/owner changes

Accepts requests to transfer account ownership.

Accepts requests to transfer account ownership.

Does participant have online password-protected access to account?

Yes

Yes

Can the complete enrollment process including funding be done online?

Yes

No

Telephone

1-800-997-4295

1-888-5-SCHOLAR (1-888-572-4652)