Equipping you to help your clients save for college.

KEY FACTS
  • Available nationwide: 100% tax-free growth on both state and federal level1.
  • Low cost: Expenses that are less than half the national average for all 529 plans2.
  • Convenient, flexible investment choices: Enrollment Year Investment Portfolios as well as single- and multi-fund options.
  • Estate planning benefits: No federal gift tax on lump sum contributions of $75,000 for single filers or $150,000 for couples (considered an accelerated five-year gift)3.
  • Control over assets: Donor can change beneficiaries or withdraw funds for other purposes, regardless of beneficiary age4.
  • Simplified 529 account management: Access client data easily and quickly with Ascensus QuickView.
WHAT YOU CAN DO
  • Include college savings as part of your periodic goal discussions.
  • Encourage your clients to have dedicated college savings accounts, as this may both reduce the temptation to use retirement assets for college savings and help them sleep at night.
  • Make sure college savings are invested in vehicles with appropriate risk-reward profiles, and that your clients take advantage of available tax benefits.
  • Minimize your time needed to manage these assets by considering the ScholarShare 529 Enrollment Year Investment Portfolios—options that feature a carefully planned glide path which can eliminate the need for you to manually reallocate these funds (active and passive options available).

1When used for qualified higher education expenses.

2Source: ISS Market Intelligence 529 College Savings Fee Analysis Q3 2021. ScholarShare 529’s average annual asset-based fees are 0.26% for all portfolios compared to 0.55% for all 529 plans.

3Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan.

4Withdrawals for non-qualified expenses subject to taxes plus 10% penalty on income only.

For more information about the ScholarShare College Savings Plan, call 1-800-544-5248 or click here for a Plan Description which includes investment objectives, risks, charges, expenses, and other important information. Read and consider it carefully before investing.

Please note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your legal or tax professional for tax advice based on your own circumstances. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss.

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.

The ScholarShare College Savings Plan is offered by the State of California. TIAA-CREF Tuition Financing, Inc. (TFI), program manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the ScholarShare College Savings Plan.

The Plan Web site contains links to other Web sites. Neither the Plan nor TFI and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

All social media platforms are managed by the State of California.

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