“This news strengthens our position as an industry leader in 529 college savings programs, and comes at the perfect time for end-of-year tax planning,” commented Angela Baier, chief executive officer.
Denver, CO (PRWEB) December 12, 2014
CollegeInvest, Colorado’s tax-advantaged 529 college savings program, announced today that the 2015 guaranteed annual rate of return year for its Stable Value Plus savings plan will increase to 3.09%, net of fees.
The annual rate adjustment solidifies the program’s consistent standing as one of the nation’s top-three highest rates offered among fixed-income 529 college savings programs, and represents its highest guaranteed rate offered in the past five years. While the rate of return has increased, the plan’s administrative fees will remain the same for the fifth consecutive year.
Stable Value Plus is managed by MetLife Metropolitan Life Insurance Company of Connecticut (MetLife), in partnership with CollegeInvest. MetLife provides a guarantee to the Stable Value Plus College Savings Plan to protect the principal investment and provide a minimum rate of return of 2%, with annual rate adjustments that can significantly exceed that amount. CollegeInvest currently has $80.5 million in assets under management invested in the Stable Value Plus program.
“This news strengthens our position as an industry leader in 529 college savings programs, and comes at the perfect time for end-of-year tax planning,” commented Angela Baier, chief executive officer. “Our mission at CollegeInvest is to provide Coloradans with the very best resources to help them save for college. Saving with Stable Value Plus is a great way to harness the advantages of tax-deferred compounding in a 529 college savings plan.”
Anyone can invest in CollegeInvest college savings plans, but Colorado residents get the added advantage of dollar-for-dollar state income tax deductions in the calendar year the contribution is made. Earnings grow tax-free and qualified withdrawals are made tax-free.
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About CollegeInvest
CollegeInvest is Colorado’s foremost resource designed specifically to help break down the financial barriers to attaining a higher education. By providing expert information, easy-to-use planning tools, and an exceptionally diverse menu of tax advantaged college savings plans, CollegeInvest works to help Coloradans maximize their potential to save for college. CollegeInvest currently represents $5.89 billion in savings, in more than 329,000 accounts. Money saved in a CollegeInvest 529 savings plan can be used at any public or private college, university, community college or vocational school, anywhere in the country. For more information, visit collegeinvest.org or call 1-800-448-2424, or contact your financial advisor.
Important Considerations
To learn about CollegeInvest’s 529 program, its objectives, risks, charges, expenses, limitations, restrictions and qualifications regarding the Plans’ benefits and potential tax advantages, please read and consider carefully the Program Disclosure Statements (PDS) available at http://www.collegeinvest.org before investing. Also, check with your or your beneficiary’s home state to learn if it offers tax or other benefits for investing in its own plan. Administered and issued by CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest. Copyright © 2014 CollegeInvest.
The rate of return is reset each year by MetLife and will not go below a minimum of 2%. The minimum rate of return of 2% is prior to any fees or charges payable to CollegeInvest, including an annual administrative fee, which is currently 0.71%.
Contributions to the CollegeInvest 529 Plans are deductible from Colorado State income tax in the tax year of the contribution up to the account holder’s Colorado taxable income for that year. Such deductions are subject to recapture in subsequent years in which non-qualified withdrawals are made.
The earnings portion of a non-qualified withdrawal is subject to federal income tax and any applicable state income tax, as well as an additional 10% penalty tax.