College Planning at the Capital
The media primarily reports the missteps, conflicts, and vilifications that occur within our government. Last Monday, three A & I Financial Services wealth managers attended the Colorado House of Representatives Education Committee meeting at the state capital. The legislators, speakers, and citizens who attended were informed, thoughtful, and respectful - a refreshing view of our government’s inner workings.
The visit stemmed from our interest in HB18-1217 - Income Tax Credit For Employer 529 Contributions. This bipartisan bill creates a new state income tax credit for employers who contribute to an employee’s Colorado 529 program. Ideally, this bill incents employers to institute matching programs and spur employees to increase their education savings. Wouldn’t it be great if your employer contributed money to your child’s 529 account? Good for employers, employees, and our next generation of scholars.
Following the introduction of the bill, legislators asked questions regarding current law and fiscal impact. Representatives from the Chamber of Commerce, the National Association of Insurance and Financial Advisors (NAIFA), and citizens took advantage of the 3-minute testimony windows to express their support for the bill. Some expressed an opposing view that the benefit would not be equitable to lower-income employees.
Ultimately, the House Education Committee voted to approve HB18-2017 and forward it to the House Finance Committee where the fiscal impact will be scrutinized before the bill heads to the House floor for a vote and, if approved, on to the state Senate.
Watch for the progression of this bill. Visit our capital when you see an opportunity. Ask your employer to implement a 529 plan payroll deduction and consider a matching program. Ask your wealth manager how to start a 529 plan for your kids or grandkids. After all, March Madness just started and it’s a well-known fact that we will miss 100% of the shots we don’t take!