SOURCE: ScholarShare

ScholarShare

September 05, 2017 11:17 ET

ScholarShare 529 Plan Raises Awareness About Saving for College During National College Savings Month

Saving for a Child's Higher Education is Simple with the ScholarShare 529 Plan

SACRAMENTO, CA--(Marketwired - September 05, 2017) - A recent survey conducted by ScholarShare, California's 529 College Savings Plan, showed that most California parents believe it is their job to help pay for college. In fact, 88% say it is one of the most important things they can do. However, only 25% of parents feel confident about saving for college given the growing cost. To help all parents, ScholarShare is raising awareness about its 529 plan during National College Savings Month in September.

According to the survey, parents saving with a college savings account -- even if they were only saving $25 per month -- feel more confident about being able to pay for college. With ScholarShare, parents can benefit from tax-deferred growth and compound interest.

In an effort to make the saving process simpler for parents, ScholarShare offers the ability to set up automatic payroll deduction. A growing number of companies, including eleven of the largest employers [in California], are making this feature available to their employees. By offering direct deposit, employees have access to 100% tax-free growth on their college savings. Companies can request an on-site visit from a ScholarShare representative, a webinar session and other resources to educate employees on the program and its benefits.

ScholarShare is California's state-sponsored 529 college savings plan, and was recently ranked second in the top direct-sold 529 plans for three-year performance by www.SavingForCollege.com. Since its inception in 1999, ScholarShare has grown to more than 292,000 open accounts with over $7.8 billion in total plan assets. In 2016, ScholarShare helped California families meet their higher education needs, with more than $379 million withdrawn by families to pay for qualified higher education expenses.

ScholarShare offers a diverse set of investment options, and provides tax-deferred growth and withdrawals free from state and federal taxes when the funds are used for qualified higher education expenses, such as tuition and fees, books, computers, or even certain room and board costs. Any U.S. citizen, or resident alien with a valid Social Security Number or Taxpayer Identification Number, can open a new account. ScholarShare has no annual account maintenance fee, no income limit and offers a high maximum account balance limit.

To learn more about California's 529 plan, please visit www.ScholarShare.com.

About the ScholarShare 529 College Savings Plan:

ScholarShare accounts may be opened with as little as $25. 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 $7.8 billion in assets in more than 292,000 accounts as of 12/13/16. 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 higher education 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. Nonqualified 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.

Attachment Available: http://www.marketwire.com/library/MwGo/2017/9/5/11G144986/ScholarShare_529_Infographic_(2)-7eb3c77f4904bb9ca2cbbe781d4f8025.pdf