SACRAMENTO, CA--(Marketwired - April 06, 2016) - Spring marks the start of not only brighter and longer days, but also your child's college fund with California's 529 College Savings Plan, ScholarShare. Just as a young plant needs only a little sun and water to reach for the sky, with ScholarShare, you can start small with a nominal $25 to open an account and begin reducing the cost of higher education. And, as you celebrate birth throughout the year, ScholarShare makes it easy for friends and family to e-gift college savings to help the account grow. As the days get brighter this season, each contribution will make your child's future brighter as well.
Ranked as one of the top rated 529 college savings plans in the country by Morningstar, an independent investment research firm, ScholarShare makes continued savings simple with its online resources. With the planning tool, you can estimate how your savings will add up by the time your child goes off to college and set a savings goals. After that, automatic contribution plans are available to help keep you on track toward achieving your goals with as little as $15 per pay period using automatic payroll deduction.
Anyone with a valid social security number or taxpayer identification number can spring into action and open a new account. Any earnings from the college fund are tax deferred and withdrawals are free from federal and California state income tax when used to pay for qualified higher education expenses. This includes mandatory fees, books, supplies, computer equipment, or even certain room and board costs.
About the ScholarShare 529 College Savings Plan:
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 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 Once funds are placed in the account, investment earnings, if any, are not federally or state taxed, if withdrawn to pay for qualified higher education expenses.
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.