Tomorrow is 529 Day! What exactly is 529 Day you ask? Well, first off, it’s a play on tomorrow’s date 5/29, but taking that a bit further College Savings Accounts (CSAs) are commonly referred to as 529 plans; therefore Friday, May 29th is 529 Day!

We have some special plans in store for two of our Colorado locations tomorrow for 529 Day. Representatives from our College Savings Account and Marketing Departments will be out front of our location at Kipling & Belleview from 9:30am-11:30am. We will have coffee and donuts available to customers who stop by. For the afternoon we’ll take the festivities up north to our location at  88th & Wadsworth from 1:00pm-3:00pm, where we will have popcorn and cotton candy. If you have any questions about College Savings Accounts or would like some more information to look over before opening an 529 account please stop by to see us!

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Why Should You Open a 529 Account with FirstBank?

The CollegeInvest Smart Choice College Savings Plan, commonly referred to as a 529 account, is a valuable tool to help you save money for college. You can open a CollegeInvest Smart Choice College Savings Plan online with FirstBank in less than five minutes right here!

FDIC Insured

  • The FirstBank Smart Choice College Savings Plan is the only 529 plan in Colorado that is FDIC insured.

Flexibility

  • FirstBank offers two different types of Smart Choice College Savings Plans: a Money Market Savings account and a 1-Year Time Savings account.
  • The Money Market option is a liquid account that allows deposits and withdrawals at any time.
  • The 1-Year Time Savings option is a time account that offers low-risk investment opportunities and higher interest rates by locking in your deposits for a specified period of time (1 year). Deposit can be made to the 1-Year Time Savings account at any time, without extending the account’s maturity.

$50 Promotion

  • FirstBank will give you $50 for college when you open a FirstBank 529 account with a minimum of $50 and setup automatic transfers into the account.

529 Scholarship from CollegeInvest

  • Our college savings partner, CollegeInvest, offers a 529 Scholarship. The CollegeInvest 529 Scholarship is designed to award scholarships to Colorado families who have saved for college, but still need assistance and are not Pell eligible. Each eligible student is awarded $2,000 per school year, up to $8,000 over 4 years. They also offer a Matching Grant program, which is designed to help middle to low-income families save money for a higher education. Their Matching Grant program matches dollar-for-dollar up to $2,500 saved over five years.

College is Expensive

The earlier that you start saving for college means more time to allow your savings to work for you! The annual cost of 4-years of tuition, fees, and room & board is continuously on the rise. Take a look at the table below to see what the 4-year cost of attending college could look like 5, 10, and 18 years from today’s current cost.

Timeline

Public In-State

Public Out-of-State

Private

Today

$85,323

$146,996

$189,657

In 5 years

$107,718

$185,579

$239,436

In 10 years

$144,151

$248,347

$320,422

In 18 years

$229,754

$395,827

$510,703

Source: College Board’s “2013 Trends in College Pricing” based on hypothetical 6% inflation rate. Figures are based on estimated average of current student expenses including tuition, fees, room and board.

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The Cost of Waiting

The longer you wait, the more difficult it can be to pay for college. CollegeInvest has two handy calculators, powered by Vanguard, on their website one is the Cost of College Calculator and the other is the College Savings Planner. Check out these calculators from CollegeInvest to better understand your scenario.

529 Plan Tax Benefits

Federal Tax Advantages

  • Earnings grow tax-deferred
  • Distributions are tax-free when used for qualified secondary education costs
    • “Qualified” = Tuition, fees, room & board, required supplies/equipment

Colorado State Tax Advantages

  • One of the most generous in the nation
  • Contributions are tax deductible (4.63%) up to AGI
  • Only savings plan that allows for this deduction

2015 Colorado Tax Form

  • Option to deposit refund directly into a CollegeInvest account
  • May use refund to open an account
  • Refund is considered a contribution – deductible for next year

Please consult your tax advisor regarding potential tax benefits. All information provided here is intended as a convenient source of information. The information is general in nature, is not complete, and may not apply to your specific situation.

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