Potential Value of $1 in 18 Years**
More Money for College
Thanks to the tax advantages available with ScholarShare 529, you could have 25% more money for college.**
- Tax-free growth on investment earnings.
- Tax-free withdrawals for qualified expenses.
- Tax-free repayment for education loans.
*If the funds aren't used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings. **Hypothetical example assuming 7% returns compounded continuously. Tax calculations assume the maximum federal capital gains tax rate of 20% and the maximum CA marginal tax rate of 13.3%, that all taxes are paid at the end of the 18th year, and that local taxes are in excess of federal deductible amounts.