Colorado 529 Plan: What College Savers Should Know

In September 2023, Colorado held about $11 billion across its 529 plans, according to the Federal Reserve.^[1]

529 plans are state-sponsored investment accounts specially designed to help people save for college. Some states also allow residents to save for K-12 costs with 529 plans, but not Colorado. However, Colorado's 529 plans come with other benefits.

Colorado's 529 Plans

Colorado offers four 529 college savings plans.

CollegeInvest Direct Portfolio College Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? No
• Fees: 0.29%
• Performance Notes: As of October 2023, moderate growth portfolio has gained an average of 5.29% in annual returns since its creation.

CollegeInvest Smart Choice College Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? No
• Fees: 0%
• Performance Notes: It's unclear how much you might expect to gain in dividends from this account since this plan operates more like a lower-interest savings account. You should ask FirstBank for specific details.

Stable Value Plus College Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? No
• Fees: 0.71-0.99%
• Performance Notes: This plan offers a guaranteed rate of return, which changes annually. It will not go below 1.5%.

Scholars Choice Education Savings Plan (Advisor Sold)

• Requires State Residency? No
• K-12 Expenses Eligible? No
• Fees: 0.3-1.75%
• Performance Notes: On average, the 2024/2025 Enrollment Portfolio has lost 3.9% since its inception in July 2021.

Colorado 529 Plan Benefits

According to the College Savings Plan Network:^[2]

• State residents can deduct annual contributions to Colorado 529 on their taxes — up to $20,700 if they're single and $31,000 if they're married and filing jointly.
• In Colorado, you can contribute up to $500,000 in total to college savings plans.
• If your child was born in the state after 2020 and you open a direct-sold (not advisor-sold) Colorado 529 plan, the state will contribute $100.
• Colorado also matches up to $400 for low- and middle-income families.