Invest in the Future By Investing in Education

CAPHave you heard of a 529 Plan? This could be a highly advantageous option for those looking to help send a child, or grandchild to college. The 529 Plan is “A plan operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training for a designated beneficiary, such as a child or grandchild.”* The 529 Plan was first created in 1996 and it is named after the Internal Revenue code, section 529. The official name is the “Qualified Tuition Program.” When first rolled out, the benefits available through this program were not as profitable when compared with other available plans. But, through being recently acquired by Legg Mason, it has become a worthwhile investment tool to explore.

Higher education, and the price tag associated with it, is continuing to rise across the nation. If you have been looking for a viable solution to saving for college, this could be the perfect option. Most states have the 529 Plan available, although the details and restrictions can vary from state to state. Also, it is important to note, that establishing this plan in one state, should not (in most cases) restrict the beneficiary from using it for college in a differing state. Federal tax benefits for the 529 Plan include your investment growing tax-deferred and payments for the beneficiary’s college costs come out federally tax-free. State tax benefits may also be available but will vary depending on the state. For Colorado, one major benefit is anyone putting money into a plan will receive a reduction of their taxable income. To learn more about the 529 Plan in general, visit here; to learn more about the federal and state benefits, visit here. Or, to learn more specifically about the different 529 Plans available in Colorado, please visit here.

Education is very important. Our ClearPath team would love to help you explore your available options and the possible benefits associated with a 529 Plan. Contact us and let’s get started creating a ‘clear path’ to higher education for your loved ones.


*”529 Plans: Questions and Answers.” . Internal Revenue Service , n.d. Web. 5 May 2014. <>.

“Name the top 7 benefits of 529 plans.” . Saving for College, LLC, 18 Nov. 2013. Web. 5 May 2014. <>.

“What is a 529 plan?.” <i></i>. Saving for College, LLC, 18 Nov. 2013. Web. 5 May 2014. &lt;;.


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