For those of you that want to learn more about our College Savings Accounts (CSAs), also known as 529 accounts, we have some special events planned at four of our Colorado FirstBank locations:

When and Where: each location will activate from 11 a.m. – 2 p.m.

Freebies: Food and refreshments, FirstBank swag and a chance to win an Amazon gift card.

Representatives from our CSA department will be answering questions and providing key information, so if you’re interested in a 529 account, stop by to see us.

Eight Reasons 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 here. But why should you open one?

$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.

Be Entered for A Chance to Win $2,500

Open a 529 College Savings Account between May 1 and May 31. Then make a contribution of at least $1.00 in that timeframe, and you’ll be entered to win $2,500, courtesy of FirstBank. If you are already a current 529 CSA account holder, your good savings habits will also be rewarded. As long as a qualifying deposit is made during the promotion period, you will be entered to win. Visit www.efirstbank.com/CSApromo for more details.

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). Deposits can be made to the 1-Year Time Savings account at any time, without extending the account’s maturity.

529 Scholarships

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 Federal Pell Grant eligible. Each eligible student is awarded $2,000 per school year, up to $8,000 over four 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 you start saving for college means more time to allow your savings to work for you. The annual cost of four-years of room and board, tuition, and fees is continuously on the rise according to College Board’s Trends in College Pricing.

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 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
  • Only savings plan that allows for this deduction

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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