"Basically, families that save money into one of CollegeInvest's 529 college savings plans, that meet all of the eligibility requirements, can get a dollar-for-dollar match on all of their contributions into a college invest plan up to $500 a year for up to five years," Luke J. Carleo of CollegeInvest said.
Carleo says for eligible middle-to-lower income families the program can pay off in the long run. A $2,500 investment over five years by a qualifying person would turn into $5,000.
To qualify, investors must meet the income eligibility guidelines, be Colorado residents and the child must be 12 or younger at the time of the initial application, among other things. (Full CollegeInvest requirements here)
The CollegeInvest college savings program is the only college investment opportunity for Colorado residents which combines federal tax advantages with a state income tax deduction for contributions.
Carleo says the big advantage for Colorado residents is that investor's funds grow tax free because of the federal income tax benefits. Additionally, those funds, as long as they are used for higher education, are not taxed upon withdrawal.
Additionally, there are benefits at the state level.
"The advantage for Colorado residents for our program, you receive a state income tax deduction for all of your contributions which is a big benefit for any Colorado resident but especially those families that could qualify for a matching grant program," he added.
Carleo says investors would then receive the state income tax deduction as well as the match on contributions.
"It really is a great advantage for Colorado families," he said.
To find out more about CollegeInvest Matching Grant Program call 1-800-478-5651 or e-mail email@example.com.
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