SACRAMENTO, CA--(Marketwired - May 23, 2016) - In celebration of National 529 Day, ScholarShare, California's 529 college savings plan, will offer a one-day only "You Start It, We Match It" promotion to help families jump start their college savings efforts.
Families who open a new ScholarShare 529 college savings account on Wednesday, May 25 will receive a matching deposit of $50 from ScholarShare. The program is the highest performing 529 college savings plan in the country following an analysis of its one-year investment performance by Savingforcollege.com.
"As college tuition continues to rise, and higher education becomes increasingly tied to future economic success, it is critical that families start thinking about college financing early in a child's life," said State Treasurer John Chiang, chair of the ScholarShare Investment Board. "By opening and contributing to a ScholarShare 529 account, families are creating a pathway for their children to afford a college degree without having to over-rely on burdensome student loans."
Nearly a thousand families started saving for college by opening a ScholarShare account during last year's first matching promotion for National 529 Day. National 529 Day is a push by various states to raise awareness about the importance of saving for college.
To be eligible for the "You Start It, We Match It" promotion, families will need to open a new ScholarShare account with at least $50 -- to be contributed and invested at the time the new account is opened -- and sign up for ongoing automatic contributions of $25 or more per month.
The matching deposit of $50 will be made to the eligible ScholarShare account on or before 11:59 p.m. PST on January 30, 2017. There is a limit of one matching deposit per new ScholarShare account opened for a new beneficiary. Visit www.scholarshare.com/529day for complete terms and conditions.
ScholarShare offers a diverse set of investment options to fit your family's priorities and college savings goals. The plan provides tax-deferred growth and withdrawals are free from federal and California state taxes when the funds are used to pay for qualified higher education expenses, such as tuition and fees, books, computer equipment, or certain room and board costs. Any U.S. citizen with a valid social security number or taxpayer identification number can open a new account, for as little as $25. ScholarShare has no annual account maintenance fee, no income limitations, and offers a maximum account contribution limit of $475,000. Through ScholarShare's "Give a Gift" option, parents, grandparents, aunts, uncles and friends can open a new account as a gift or make a contribution to an existing one.
About the ScholarShare 529 College Savings Plan:
To sign up for an account or for more information about the plan, visit http://www.scholarshare.com/. For information about the ScholarShare Investment Board (SIB), visit http://www.treasurer.ca.gov/scholarshare. Like ScholarShare on Facebook at http://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 higher education costs.
The ScholarShare 529 College Savings Plan Twitter and Facebook pages are managed by the State of California.
For more news, please follow the Treasurer on Twitter at @CalTreasurer and on Facebook at California State Treasurer's Office.