SB 24-226

The Colorado bill SB 24-226 updates the state's College Kickstarter Account Program by allowing more people, not just parents, to open and sponsor college savings accounts for eligible children starting in 2025. It also increases the time frame during which funding can be claimed from five years to eight years after a child’s birth or adoption. Additionally, it clarifies how interest is calculated on the funds and expands the advisory board's role by requiring more frequent meetings and updating reporting requirements. The bill has been signed into law but some changes will take effect in 2025.

Official Summary

The act modifies the college kickstarter account program (program). The act expands who may open an account and be an account sponsor on or after January 1, 2025, to include, in addition to a parent or parents of an eligible child, any other individual who provides the birth certificate number or order of adoption for an eligible child in accordance with the requirements of the program to open an account. Further, the act clarifies that on or after January 1, 2025, the amount of kickstarter funding that can be claimed is the base amount as adjusted for inflation in the year claimed plus, if the kickstarter funding is claimed in a year after the child's birth year, interest that has accrued on the base amount from the birth year to the claim year. The act also expands the membership of the program advisory board, requires the advisory board to meet at least on a quarterly basis each year, and modifies reporting requirements for the program. The act expands the period during which an account sponsor may claim kickstarter funding from 5 to 8 years from the date of the eligible child's birth or adoption and clarifies that an account is an "individual college savings account", which is any collegeinvest account. APPROVED by Governor May 31, 2024 PORTIONS EFFECTIVE May 31, 2024 PORTIONS EFFECTIVE January 1, 2025(Note: This summary applies to this bill as enacted.)

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