Is ScholarShare 529 good?

Is ScholarShare 529 good?

California may not sponsor as many 529 college savings plans as other states, but its direct-sold ScholarShare 529 Plan definitely stands out for its low fees and high maximum contribution limits. And even though you can’t contribute past the $529,000 limit, your money can still grow tax-free in the market.

Is ScholarShare tax deductible?

As a 529 Plan, ScholarShare 529 offers unsurpassed income tax benefits. Although contributions are not deductible on your federal tax return, any investment earnings can grow tax-deferred.

How much can a parent contribute to a 529 per year?

In either case, parents receive the same treatment as any other person making a contribution: each parent can give up to $15,000 annually to their child’s 529 plan without having to file a gift tax return, for a total of $30,000 per year.

Does California offer tax break 529 plans?

Does a California 529 plan offer tax advantages? While contributions to California’s plan are not deductible at the state or federal level, all investment growth is free from state and federal taxes, and the earnings portion of withdrawals for qualified education expenses are income-tax-free.

How do I withdraw money from ScholarShare?

How to Do It Online

  1. Login to your account online.
  2. Select type of withdrawal:
  3. Select where the funds will be sent:
  4. Select “Partial” or “Total” account balance withdrawal.
  5. If you have more than one investment portfolio select “Prorated amount” or “By specific portfolio”
  6. Enter the Withdrawal Amount(s).

Can I lose money in a 529 plan?

You don’t lose unused money in a 529 plan. The money can still be used for post-secondary education, for another beneficiary who is a qualified family member such as younger siblings, nieces, nephews, or grandchildren, or even for yourself.

How do I withdraw from a 529 ScholarShare?

What can ScholarShare funds be used for?

ScholarShare 529 can be used to pay for tuition, certain room and board costs, computers and related technology expenses as well as fees, books, supplies, and other equipment.

What is the max 529 contribution for 2021?

$15,000 per beneficiary
In 2021, individuals can contribute up to $15,000 per beneficiary ($30,000 for gifts from a married couple) without using up part of their lifetime gift tax exemption or having to pay gift taxes.

Can 529 be used for graduate school?

A 529 plan is a tax-advantaged education savings plan. Originally, it was designed to cover only postsecondary education costs, but now you can also use it for K-12 education and apprenticeship programs. You can also use a 529 plan for graduate school.

Is 529 good in California?

While California’s 529 plan is a good one, California is one of seven states with an income tax system that does not allow tax deductions for contributions. There’s no limit on contributions, however, and you can contribute as much as $350,000 to a plan for a specific beneficiary.

How do I pay with ScholarShare?

With ScholarShare you get more ways to pay. With a minimum $25 dollar contribution, you can make an additional one-time payment using a personal check, Teller’s Check or Cashier’s check.

What’s new at ScholarShare 529?

SACRAMENTO, Calif. – ScholarShare 529, California’s official college savings plan, today introduced new content and resources to help underserved students… Read More SACRAMENTO, Calif. – Saving for your children’s college is always a great idea.

Who is the underwriter of ScholarShare college savings plan?

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 ScholarShare College Savings Plan.

How can ScholarShare help you reach your college dreams?

There are so many ways ScholarShare can help you reach your college dreams. Helping your employees and clients save for college helps you too. Join James Palen for a free, live on-line webinar Wed., September 22, 2021 at 11:00am-Noon Pacific Time. RSVP is required, and instructions will be sent to you…