Now that tax season is upon us, use this time to review your college savings goals and take another look at your savings strategy. Saving now can make for a brighter future later. So, as you gather up your W2 and other tax-related materials, consider opening or making a contribution to a ScholarShare account. ScholarShare, California’s 529 College Savings Plan, can provide parents and relatives – anyone saving for a child’s college education – with valuable tax advantages.
Consider putting your tax refund to work in three simple ways:
- Have the Franchise Tax Board deposit some or all of your state tax refund into your ScholarShare account;
- Make a contribution electronically from your bank account; or
- Mail a contribution check directly to the Plan
For additional information about how to do more with your tax refund this year, visit
ScholarShare is proud to partner with California 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;
- Earnings, if any, 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