News & Press Releases
529 College Savings Day gets even better with new legislation that offers a $10,000 tax deduction when investing in a ScholarShare 529 Savings Plan
Sacramento, Calif. – As California and the nation prepare to celebrate College Savings Day on May 29th, State Treasurer Fiona Ma is urging legislators to provide a state income tax deduction for those who contribute to ScholarShare 529 college savings plan.
Assembly Bill (AB) 211 would provide a state income tax deduction up to $10,000 for those who contribute to a ScholarShare 529 college savings plan. Authored by Assembly Majority Leader Ian Calderon and sponsored by State Treasurer Fiona Ma it is designed to help families and individuals save and plan for the spiraling cost of higher education. Under the bill, people who contribute to one or more ScholarShare 529 accounts receive a state income tax deduction up to $5,000 for single taxpayers and $10,000 for those who file jointly.
“Providing a state income tax deduction would make ScholarShare 529 an even better tool for California families that want to save for their children’s college education and eliminate future student loan debt,” said State Treasurer Fiona Ma. “ScholarShare 529 can help every family reach the American dream of attaining a higher education for their children. The contributions families make today pay off in the form of an increased earning potential in the future, with a college graduate earning 50 percent more than a high school graduate.”
The average student loan debt is $36,521. According to the U.S. Department of Education’s College Affordability and Transparency Center, there is $1.48 trillion total student loan debt in the United States www.collegecost.ed.gov. That’s up from $620 billion in 2008, according to the Federal Reserve Bank of New York. When Californians are saddled with student loan debt, they are not able to buy homes, cars, and other products that boost the economy.
AB 211 makes California’s strong and vibrant ScholarShare 529 savings program even more appealing. And it goes hand in hand with the recently introduced Senate Concurrent Resolution 37 (SCR 37) to officially designate May 29th as 529 College Savings Day. SCR 37 aims to raise awareness of the importance of saving for higher education and to let California families know they can save more easily with the help of a ScholarShare 529 college savings plan.
To celebrate 529 College Savings Day, ScholarShare 529 is offering a four-day matching promotion to help families kick start their college savings and free their future graduates from the burden of student debt.
To be eligible for the matching promotion, participants must open a new ScholarShare 529 account between May 28 and May 31, 2019, with a minimum $50 deposit—to be contributed and invested at the time the new account is opened—and sign up for an Automatic Contribution Plan of $25 or more for a minimum of six months.
A matching deposit of $50 will be made to the eligible ScholarShare account on or before 11:59 p.m. PST on January 31, 2020. There is a limit of one matching deposit per new ScholarShare 529 account opened for each new beneficiary.
Visit www.ScholarShare.com/529day for more information and complete terms and conditions.
College Savings Made Easy
Saving for college can be overwhelming. Sometimes the hardest part is just getting started. That’s why ScholarShare 529 is also introducing a new digital information kit to help consumers better understand and make informed decisions about saving for college. To review the materials in the digital information kit, visit www.scholarshare529.com/kit.
A Winning Tradition
The ScholarShare 529 College Savings Plan has been extremely successful with currently more than 321,000 accounts and over $9 billion in total Plan assets. In 2018 alone, more than $513 million was withdrawn for qualified higher education expenses and funds were distributed directly to at least 1,058 colleges and universities, helping students meet their higher education goals.
ABOUT SCHOLARSHARE 529
ScholarShare 529 is administered by the ScholarShare Investment Board, which is chaired by California State Treasurer Fiona Ma. TIAA-CREF Tuition Financing, Inc. is Program Manager. To learn more about the ScholarShare 529, visit ScholarShare529.com.
Fiona Ma is California’s 34th State Treasurer. She was elected November 6, 2018 with more votes (7,825,587) than any other candidate for treasurer in the state's history. She is the first woman of color and the first woman Certified Public Accountant elected to the position. California is the world’s fifth-largest economy and Treasurer Ma serves as its head banker, providing transparency and oversight for the government’s investment portfolio and accounts as well as managing $102 billion in financial assets. The State Treasurer’s Office (STO) provides financing for schools, roads, housing, levees, public facilities, and other crucial infrastructure projects that better the lives of all Californians. The STO manages cash receipts and bond issuances for the State and oversees programs that fund schools, hospitals, environmental improvements, and affordable housing and small businesses. The STO also manages three savings programs that benefit individuals with disabilities, families planning for higher education, and private-sector employees working toward retirement.