Cal South E-News | September 2012 COLLEGE PLANNING
|College Savings: More Important Than Ever|
As the cost of higher education continues to rise, college savings is more important now than ever. That is the reason that ScholarShare should be considered when thinking over how to budget for future college expenses.
ScholarShare is the state of California's 529 college investment plan. Named for the section of the IRS code under which they were created, 529 plans are highly regarded for their tax-advantaged status. Earnings on investments grow tax-deferred, and disbursements, when used for tuition and other qualified higher education expenses, are federal and state tax-free.
ScholarShare accounts may be opened online with as little as $25, or $15 when combined with regular, automatic contributions of at least $15 per month. ScholarShare has no annual account maintenance fee, no income limit and offers a high maximum contribution limit of $350,000. The program currently holds more than $4.4 billion in assets in about 250,000 accounts.
|More about ScholarShare College Savings Plans:|
Consider the investment objectives, risk, charges, and expenses before investing in the ScholarShare College Savings Plan. Visit ScholarShare.com, or call the Plan at 1-800-544-5248, for a Disclosure Booklet containing this and other information. Read it carefully. Before investing in a 529 plan, consider whether the state where you or your Beneficiary resides has a 529 plan that offers favorable state tax benefits that are available if you invest in the that state's 529 plan.Investments in the Plan are neither insured nor guaranteed, and there is a risk of investment loss. Account values will fluctuate based on a number of factors, including general market conditions. TIAA-CREF Tuition Financing, Inc., Program Manager. The ScholarShare 529 Twitter and Facebook pages are managed by the state of California.