Graduation is the Perfect Time to Think About the Future
Graduation season is here. Whether you have a child finishing kindergarten or high school, graduation is the perfect time to reflect and think about the future. Planning for college can be daunting at times, and that’s why graduation is a natural time to consider your options about saving for college, which may be just around the corner. ScholarShare, California’s 529 College Savings Plan, offers families a tax-advantaged way to save early and help them ease the burden of rising tuition as well as provide some additional encouragement for that college-bound child in your life. Also, a great graduation gift could be one your graduate can’t unwrap, a contribution to a ScholarShare 529 account. Family members and friends can easily make a gift contribution to that special graduate’s college savings account.
ScholarShare is proud to be partners with GEAR UP, so we can work together to increase the number of students who are prepared to enter and succeed in college.
According to a 2013 survey by Hart Research Associates, 92% of parents considered getting a college degree worth it, but only 46% of parents have set up a dedicated savings or investment account for their child’s higher education costs. ScholarShare, recently awarded a Bronze metal rating by Morningstar, a prominent ratings agency, is administered by the state of California and managed by TIAA-CREF Tuition Financing, Inc. Named for the section of the internal revenue code under which they were created, 529 plans offer families a tax-advantaged way to save for college.
Some of the benefits of the ScholarShare plan include:
- Accounts can be opened with as little as $25;
- A wide variety of low-cost investment options are offered;
- There are no annual account maintenance fees;
- Potential earnings are tax-free if used for qualified higher education expenses such as tuition and fees, books and supplies, and certain room and board costs;
- Funds may be used at eligible educational institutions nationwide, and some abroad;
- Anyone can contribute to the account, making it a great gift idea for family and friends for special occasions.
Preparing for college academically and financially can help keep students on the path toward success.
Consider the investment objectives, risks, charges and expenses before investing in the ScholarShare 529 College Savings Plan. Please visit www.scholarshare.com for a Program Disclosure Booklet containing this and other information. Read it carefully.
Before investing in a 529 plan, you should consider whether the state you or your Beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state’s 529 plan.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings. Investments in the Program are neither insured nor guaranteed and there is the risk of investment loss. The ScholarShare 529 College Savings Plan Twitter and Facebook pages are managed by the state of California. TIAA-CREF Tuition Financing, Inc., Plan Manager