One of the best investments that you can make in your child’s future is Colorado 529 college savings plans. This savings plan was created for Colorado citizens to save money for their children’s future college tuition costs.
This program has many other benefits which can make savings affordable and beneficial. The state-sponsored plan was established by the federal government to encourage families to save more money for college. These programs are very affordable and can be started with small contributions. Here are some of the many benefits to the Colorado 529 savings plan.
Colorado State Tax Benefits
As a Colorado resident, all of your financial contributions can be deducted from your state income tax. This means that every dollar you contribute is deducted from the taxable income that you make in a given year. Another great tax benefit is that the earnings that are accumulated are also tax-free. This means that every dollar you save can work harder for you and your child’s future.
Being in Charge with the 529 plan
Another great benefit to the Colorado 529 savings plan is that you are in charge of your money. You decide how the money will be invested and with what companies. This gives you total control of your money and your investments. If you need the money in a savings plan for another purpose the money can be withdrawn in the future. There are some tax consequences for doing so.
Creating a plan for your Colorado 529 Program
Investing in a Colorado 529 college savings plan is very easy. It takes discipline to make the monthly contributions that are needed to make the account accumulate over time. Once enrolled in a 529 plan you can speak to a representative which will take your situation independently and decide what your best options are. Depending on the age of your child the amount of the monthly contributions may vary.
What does the Colorado 529 College Savings Plan Cover?
You have many options on how the money is allocated once your child is ready to attend a state university. Money can be saved for college tuition, living expenses, books, and other items that are associated with attending college. There are many hidden costs while attending a state university. Paying for tuition is only a portion of what your child may need to pay for. Having the flexibility to cover some of these other expenses can be very important.
Another great benefit of the 529 Colorado college savings plan is the various universities that the beneficiary can attend. There are thousands of colleges that are participating in the program which makes it very convenient. Even know your student is part of the 529 Colorado College plan he or she can still attend an out of state university. As long as the state university is part of the 529 program, money can be used to pay for tuition outside of the state of Colorado.
Helping your child pay for college may be the best possible investment that you can make in their future. There is no better time than now then to invest in your child’s education. Having the education needed to compete in today’s competitive work environment can be very helpful. Take advantage of the many benefits of the Colorado 529 college savings plan