Governor Polis signs bill allowing withdrawals for apprenticeships as qualified education expenses.
DENVER, June 27, 2022 /PRNewswire-PRWeb/ -- CollegeInvest, Colorado's self-sustaining, not-for-profit higher education savings resource announced today that Governor Jared Polis has signed Colorado House Bill 22- 1310 into law, approving expenses associated with apprenticeship programs as qualified withdrawals from CollegeInvest 529 savings accounts. The new law is effective immediately, and provides for a state tax deduction for these expenses by Coloradans participating the CollegeInvest savings program.
The SECURE Act of 2019 expanded the qualified use of 529 accounts at the federal level by allowing withdrawals for apprenticeships. While the federal tax code sets the general rules of qualified tuition programs like CollegeInvest, it authorizes each state to administer its own program and determine its unique state tax treatment and other policies.
Angela Baier, CollegeInvest's chief executive officer said, "We are proud that Colorado has taken this step to approve the use of CollegeInvest funds for apprenticeships as a qualified education expense. We believe this reinforces the original intent of the Colorado legislature when creating CollegeInvest as a tool for families to save and pay for post-secondary credentials."
The bipartisan bill was sponsored by State Representatives Colin Larson and Cathy Kipp, and State Senators Jeff Bridges and Rob Woodward.
Apprenticeships provide a proven career pathway that combines education with on-the-job training while earning a paycheck, allowing students to engage with their chosen industry while earning a professional credential that boosts their earning potential. In 2020, the Colorado Department of Higher Education unveiled the Colorado Collegiate Apprentice Program, an innovative new learning model that empowers Coloradans with the hands-on career training to accelerate their education in specific fields. In partnership with the Colorado Community College system, and funded through a grant from the U.S. Department of Labor, the first learning track focused on careers in healthcare, with other industry programs to follow.
The U.S. Department of Labor provides a search tool to locate eligible apprenticeship programs. When applied to an eligible apprenticeship program, CollegeInvest 529 savings can be used towards program fees, books, supplies, and equipment, including the tools needed for the trade.
Based on the principle that saving for post-secondary education is a vastly more effective strategy than borrowing, CollegeInvest is Colorado's trusted resource in breaking down the financial barriers to attaining higher education, whether through an apprenticeship, trade, school, community college, or a four-year university. For more information, please visit us at collegeinvest.org.
About CollegeInvest
CollegeInvest is Colorado's foremost resource designed specifically to help break down the financial barriers to attaining higher education or vocational training. 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 $11 billion in savings and 390,000 accounts, the majority of which are held by Colorado residents. Money saved in a CollegeInvest 529 savings plan can be used at any public or private college, university, community college, vocational school, and now apprenticeships, anywhere in the country. For more information, visit collegeinvest.org, call 1-800-448-2424, or contact your financial advisor.
Important Considerations
To learn about CollegeInvest's 529 programs, 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 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 ©2022 CollegeInvest.
Investment returns are not guaranteed, and you could lose money, including principal.
Media Contact
Susan Hagar, CollegeInvest, 720.935.1777, [email protected]
Mike Blake, CollegeInvest, 303.376.8809, [email protected]
SOURCE CollegeInvest
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