529 Plans

Colorado 529 Plan Rules

Colorado's plan is CollegeInvest. Colorado allows a deduction per beneficiary of up to $26,200 for 2026, or $39,200 on a joint return. Colorado does not follow the federal K-12 rules. CollegeInvest says K-12 tuition remains unqualified under Colorado law, so K-12 withdrawals are nonqualified for state tax.

Plan: CollegeInvest
State tax break: Colorado allows a deduction per beneficiary of up to $26,200 for 2026, or $39,200 on a joint return.
K-12 withdrawals: Taxed by the state
Detail: Colorado does not follow the federal K-12 rules. CollegeInvest says K-12 tuition remains unqualified under Colorado law, so K-12 withdrawals are nonqualified for state tax.
Maximum balance: $500,000 per beneficiary
Federal K-12 limit: $20,000 a year per student

For the federal conditions on tutoring and the full list of K-12 expenses, see Can you use a 529 plan for tutoring?

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The state and federal rules on this page, to share with whoever does your taxes.

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Frequently asked questions

Does Colorado give a tax deduction for 529 contributions?

Colorado allows a deduction per beneficiary of up to $26,200 for 2026, or $39,200 on a joint return.

Can I use a Colorado 529 plan for tutoring?

Federal law allows it, but this state taxes K-12 withdrawals. Colorado does not follow the federal K-12 rules. CollegeInvest says K-12 tuition remains unqualified under Colorado law, so K-12 withdrawals are nonqualified for state tax. Under the federal rule, the tutor cannot be related to the student and must be a licensed teacher, have taught at an eligible educational institution, or be a subject matter expert.

Can I use a Colorado 529 plan for private school or other K-12 costs?

Federal law allows up to $20,000 a year per student for K-12 tuition and the other listed expenses. Colorado does not follow the federal K-12 rules. CollegeInvest says K-12 tuition remains unqualified under Colorado law, so K-12 withdrawals are nonqualified for state tax.

What is the maximum balance in a Colorado 529 plan?

$500,000 per beneficiary.

State rules: CollegeInvest official documents. Federal rules: IRS Tax Topic 313 and Public Law 119-21. Read October 6, 2026. This page is general information, not tax advice.