SACRAMENTO, CA--(Marketwired - Jun 14, 2013) - This Father's Day, ScholarShare, California's 529 college savings program, is encouraging all dads to be the dad of the year -- now and in the future -- by starting a 529 college savings plan for their child. Whether you're expecting a child or have a child finishing middle school, now is the time to open a brand new ScholarShare 529 college savings account, which takes only $25 to open.
According to the ScholarShare College Savings Survey, most California parents are worried about being able to afford the rising cost of college tuition; however, very few have started saving to help pay the costs for their child. Many families have discovered opening a 529 college savings account can offer significant benefits. Any earnings from your college fund can grow tax-deferred and are federal and California state income tax-free when used to pay for qualified higher education expenses.
ScholarShare has the tools to make it easier than ever for anyone to contribute to your child's future college tuition costs. Families interested in saving for college can check out ScholarShare's online resource tools on their website. Through the "Give a Gift" option, any gift-giver can open an account or contribute to an existing one. College savings specialists are available for phone and in-person consultations at no additional cost to answer questions.
ScholarShare continues to offer flexible features for anyone interested in starting a college savings plan. Any US citizen, or resident alien with a valid Social Security Number or Taxpayer Identification Number, can open a new account on behalf of a beneficiary. Funds can be used at any eligible educational institution in the nation, and some abroad, for a variety of qualified higher education expenses, including mandatory fees, books, supplies, or even certain room and board costs.
About the ScholarShare 529 College Savings Plan:
ScholarShare accounts may be opened with as little as $25 per investment portfolio. ScholarShare has no annual account maintenance fee, no income limit and offers a high maximum account balance. Established in 1999, ScholarShare currently holds more than $5.1 billion in assets in more than 244,000 accounts as of 4/30/13. To sign up for an account or for more information about the plan, visit www.scholarshare.com. For information about the ScholarShare Investment Board (SIB), visit www.treasurer.ca.gov/scholarshare. Like ScholarShare on Facebook at www.facebook.com/scholarshare529 and follow us on Twitter at @ScholarShare529.
Named for the section of the IRS code under which they were created, 529 plans offer valuable tax advantages. Contributions are made with money that has already been taxed. Once funds are placed in the account, investment earnings, if any, are not federally or state taxed, if withdrawn to pay for qualified college costs.
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., Program Manager.
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