Smart Choice College Savings Account

Frequently Asked Questions

What is a 529 account?

529 accounts are tax-favored options created to help individuals and families save for qualified higher education expenses through a qualified tuition program under Section 529 of the Internal Revenue Code. These programs are established by states or eligible educational organizations.

These accounts offer tax advantages to Colorado residents, including tax deductible contributions and tax free distributions when used to pay for qualified educational expenses. Residents of other states may also receive state tax benefits from utilizing a 529 account. Please consult a tax advisor.

• If an individual establishes a 529 account in Colorado, the beneficiary is not required to attend a school in Colorado.
• Qualified distributions from a 529 account can be used for eligible public and private colleges, universities, trade and vocational schools across the country.
• Residents from states other than Colorado can also invest in a Colorado 529 account; however, they may or may not receive a state tax benefit from their home state. Likewise, a Colorado resident may choose a state other than Colorado in which to invest their 529 account funds, however, they may or may not receive a state tax deduction.

Who is eligible to open a College Savings Account (CSA)?

• A United States citizen.
• A United States resident alien with a Social Security number or ITIN and a permanent address in the United States.

How can individuals open a CSA?

Customers can open a CSA through any of the following methods:

• In person with a New Accounts Representative at any of our branch locations.
• Over the telephone with a Representative. To get started give us a call at 303-235-1102, or toll-free at 1-800-964-3444.
• Online at www.efirstbank.com. Note, this option is not available if the account is being funded by a direct transfer from another 529 Account.

Who may contribute to a CSA?

Anyone may contribute to a CSA. There is no requirement that the contributor be a family member or that he/she has earned compensation.

Can the beneficiary of a CSA be changed?

Yes, in most situations the beneficiary can be changed to an eligible family member by establishing a new account with the same account owner and new beneficiary, in addition to completing a CSA change of beneficiary form.

Can the account owner of a CSA be changed?

Yes, in most situations the account owner can be changed by establishing a new account with the new account owner and same beneficiary.

Can I transfer funds to my College Savings Account from my checking or savings account at another financial institution?

Yes, you can set up automatic transfers into your CSA from another financial institution. In order to set up automatic transfers, please complete the External Electronic Transfer Authorization form and return it to a branch or mail it to:

PO Box 150097
Lakewood, CO 80215

When can I withdraw money from my College Savings Account?

FirstBank CSA assets are available for withdrawals anytime if you are enrolled in our Money Market Savings Account. If you have our 1-Year Time Savings, you can access those funds during the grace period*. If you have questions about what type of account you have or when your maturity date is, please reach out to us.

• Customers are able to access their funds at any time through the Automated Clearing House (ACH), online banking, telephone transfer, with a teller, or a wire.
  • Customers are not able to write checks or use Bill Pay
• If the funds are being withdrawn from a 1-Year Time CSA, the distribution may be subject to an early withdrawal penalty.
• Distributions/withdrawals for non-qualified expenses may have a tax consequence and penalty. Please consult your tax advisor regarding tax consequences.