Qualified 529 plans are a great way to set money aside for future cost of college while saving money on your taxes; CollegeInvest and Scholars Choice are the two approved Colorado 529 plans that gain the subtraction on a Colorado state return. But, the contribution deadline for the 2016 tax year is approaching very quickly. Be sure to have all contributions in by December 31st or you won’t see the benefit on your 2016 return.
Moneys set aside in qualified 529 plans can now be used for more expenses. New legislation now allow funds to be used for computers and related equipment. This will included computers, printers, software, and internet access.
If you’re concerned about how to fund a child’s future college expenses, or you simply want to take advantage of the additional deduction 529 plans offer, now is the time to make contributions.