The Colorado Scholars Choice College Savings Program, a Legg Mason-managed 529 savings program is sold exclusively through brokers. It features a lineup of age-based and static portfolio options utilizing funds managed by Legg Mason affiliates and Thornburg.
- Summary: The Colorado Scholars Choice College Savings Program, a Legg Mason-managed 529 savings program is sold exclusively through brokers. It features a lineup of age-based and static portfolio options utilizing funds managed by Legg Mason affiliates and Thornburg.
- Program type: Savings
- Program manager: Legg Mason, Inc.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Colorado's 529 plans for the same beneficiary reach $350,000.
- Minimum contributions: The minimum initial contribution is $250, and the minimum subsequent contribution is $50. The minimum is waived for employer-sponsored arrangements. The $250 minimum initial contribution is also waived with the establishment of periodic automatic funds transfer of $50 or greater.
- Age-based investment options: The Age-Based and Years to Enrollment options contain up to 7 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary?s age, or number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
- Static investment options: Select among 11 investment options: 5 individual fund portfolios and six static options. The static options consist of 5 multi-fund portfolios (Balanced 50/50, All Equity, All Fixed Income, Equity 80%, and Fixed Income 80%), and the Cash Reserve Option.
- Underlying investments: Legg Mason Capital Management, ClearBridge Advisors, Batterymarch, Royce & Associates, Brandywine, Thornburg, and Western Asset Management.
- Enrollment or application fee: None, but contributions may be subject to a sales charge depending on share class.
- Account maintenance fee: $20 annual fee, waived for account owners or beneficiaries who are Colorado or Wyoming residents (with account established prior to December 1, 2011 for Wyoming resident) and for accounts with at least $2,500.
- Program management fees: 0.10% administrative fee (0.04% waived commencing September 1, 2011) to the state plus distribution/servicing fees of 0.25% (Class A), 0.95% (Class B), 0.75% (Class C), 0.00% (Class O); 1.09% combined fee for the Cash Reserve option includes underlying fund expenses.
- Expenses of the underlying investments: Ranges from 0.29% to 0.87% (portfolio weighted average) in the age-based and static multi-fund portfolios; 0.61% to 1.29% in the individual portfolios.
- Total asset-based expense ratio: Class A: 0.64% - 1.64%
Class B: 1.09% - 2.34%
Class C: 1.09% - 2.14%
Class O: 1.09%
Cash Reserve Option: 1.09%
Note: Expenses are 0.04% less commencing September 1, 2011 due to temporary state fee waiver.
- Program match on contributions: The Matching Grant Program provides a dollar-for-dollar match of up to $500 in contributions for lower- to middle-income Colorado residents to accounts with an eligible beneficiary (a dependent under age 13 at the time of initial application). Applications are accepted each year between September 1 and December 31. The match can extend for a maximum five years. Matching grants for future years are subject to continued funding by the sponsor.
The CollegeInvest 529 Scholarship provides a $2,000 scholarship to any full-time student who is a Colorado resident, has maintained or has had a parent/guardian maintain a CollegeInvest account for at least two years, and can substantiate an expected family contribution (EFC) of $25,000 or less. The scholarship is renewable each year up to a total of four years or $8,000. Applications are accepted January 1 through July 31.
- State tax deduction or credit for contributions: Contributions to a Colorado 529 plan, to the extent of the contributor's federal taxable income, are deductible in computing Colorado taxable income. Rollover contributions are not eligible for the deduction.
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- Telephone: 1-888-572-4652
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