SACRAMENTO, CA--(Marketwire - May 10, 2012) - This Mother's Day, ScholarShare, California's 529 college savings program, recommends giving a Mom in your life a gift that can appreciate with time and ease the burden of saving for her child's college future. It takes only $25 to open a brand new college savings account and with that, you can grant that special Mom peace of mind knowing that she'll be giving her child the chance to save for the college of his or her dreams.
Rising college tuition and fees have led many hard-working families to struggle under the weight of massive student loan debt. Many mothers want to provide a path to higher education for their child, but certain economic stresses do not allow them to save as much as they would like. Establishing a college fund early in life can help a mom maintain the ability to pay for her child's higher education without hampering her ability to pay the bills.
ScholarShare has the tools to make it easier than ever for anyone to contribute to their child's or loved ones' future college tuition costs. Families interested in saving for college can check out ScholarShare's new online resource tools on their website. And through the "Give a Gift" option on its website, any gift giver can open an account for children of all ages or contribute to an existing account. College savings specialists are available for free phone and in-person consultations to answer all questions.
ScholarShare continues to offer flexible features for anyone interested in starting a college savings plan. Any U.S. citizen, or resident alien with a valid Social Security Number or Taxpayer Identification Number, can open a new account on behalf of a beneficiary. Funds can be used at any eligible college in the nation, and some abroad, for a variety of qualified expenses, including mandatory fees, books, supplies, or even room and board.
About the ScholarShare 529 College Savings Plan:
ScholarShare accounts may be opened online with as little as $25 per investment portfolio. 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 as of 3/31/2012. More than 300,000 accounts have been opened since ScholarShare's inception in 1999. To sign up for an account or for more information about the plan, visit http://www.scholarshare.com/. For information about the SIB, visit www.treasurer.ca.gov/scholarshare. Follow ScholarShare on Twitter at @ScholarShare529.
Named for the section of IRS code under which they were created, 529 plans are highly regarded for their tax-advantaged status. Any earnings on investments can grow tax-deferred. Withdrawals, when used for tuition and other qualified higher education expenses, are federal and state income tax-free.
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. Non‐qualified 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 page is managed by the state of California.
TIAA‐CREF Tuition Financing, Inc., Plan Manager
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