ScholarShare 529 College Savings Plan

eGift FAQ

 

Got questions? We have answers!


FAQ for Account Owners

Q:
What is an eGift Code?

An eGift Code is an identifier that is automatically created when you use eGift online. It is used by the gift giver to ensure the gift contributions make it into your account.

One eGift Code will be assigned to your account and can be reused because it never expires.

You may share your eGift Code in a social media post or email. Gift givers will begin the gifting process at the "Make an Online Gift Contribution" screen and enter the code.

Q:
What is an Occasion?

An Occasion is an event you create to celebrate the special times for your beneficiary such as birthdays, holidays, graduations or any milestone. eGift allows you to invite your friends and family to join in the celebrations. You can use the pre-defined Occasions in eGift, create your own unique occasion or invite friends & family to gift without an Occasion. Just share the eGift code.

Q:
Will I know if someone contributes after I send an Occasion invitation, promote the eGift code via social media or send a personal e-mail to friends and family?

For online (bank) contributions you will receive an e-mail with the contributor's name and contribution amount. Additionally, the eGift Contribution History will list anyone who has sent an online gift contribution from a bank account.

Gift  contributions sent by check will not appear in your eGift Contribution History. Instead, you will receive a confirmation statement for all contributions made to your account regardless of contribution method.

Q:
How do I send invitations to my friends and family?

You have several options:

  1. Sending e-mail invitations using eGift
    You can set up your own Address Book with eGift, and add names and e-mail addresses of your friends and family. You will be able to edit the contact information in your eGift Address Book at any time. You can also upload a vCard from your desktop.

    When you create an “Occasion” and prepare your e-mail invitation, you will be asked to create your invitation list using the contact information you have stored in your eGift Address Book. Once you click on the "Send E-mail" button, the e-mail cannot be cancelled, deleted or retracted. E-mail invitations can take up to 24 hours to be sent to your invitees.

  2. Sending e-mail invitations
    After you prepare your email invitation you can copy and paste the message into your email program and send the invite as you would any message. Be sure to include your eGift Code in your message. Friends and family will need your eGift Code to contribute to your Beneficiary’s account.

  3. Sending an invitation by letter
    If any of your friends or family members do not have an e-mail address, you can select the “letter” option within eGift, then print the invitation and mail it to your invitee(s).

  4. Social media sharing
    We’ve made it easy to invite friends and family to give a gift using Facebook or Twitter. Make sure you’re logged in to your Facebook or Twitter account, then click one of these links, personalize your message (be sure to include the URL of your eGift page and your eGift Code) and post it:
    Request gifts using Facebook | Request gifts on Twitter
    Learn more about sharing on social media

Invitations created through eGift automatically include the eGift Code that gift givers use to ensure the gift contributions make it into your account. This eGift code has no expiration and can be used again.

Reminder: send your eGift invitations well in advance to ensure your friends and family have enough time to receive and respond.

Q:
Are gift contributions made by my friends or family members eligible for a California state income tax deduction?

No. The state of California does not currently offer a state income tax deduction for gift contributions to an existing or new account.

Q:
Who can open a new ScholarShare College Savings Plan account as a gift for my beneficiary?

Anyone with a Social Security Number (SSN) or federal Taxpayer Identification Number (TIN) can open an account with as little as $25. They will need to know the SSN or federal TIN and birthdate of your beneficiary to complete the enrollment process. Or, they can designate themselves as the beneficiary and change the beneficiary at any time once they receive the appropriate SSN or federal TIN and birthdate.

Friends and family may also symbolize their gift by downloading and printing a gift certificate for any holiday or event from baby showers to birthdays.

FAQ for Gift Givers

Q:
Who is the Account Owner and what rights does he or she have with respect to the account?

The Account Owner is the person who has opened the 529 account for a designated beneficiary. Although you may make gift contributions to this account, be aware that the Account Owner maintains control over this account. This includes control over requesting withdrawals, changing the beneficiary or even changing the account owner.

In addition, you may forego federal and/or state tax benefits, if any, which may be available to you if you establish and contribute to your own account. Refer to the Plan Disclosure Bookletand Participation Agreement for additional information.

Q:
Is there a minimum or maximum amount I can contribute to the account?

The minimum amount you may contribute to an account is $25.00.

Q:
How will my gift contribution be invested?

Gift contributions are invested using the allocation instructions set up by the Account Owner. If the Account Owner has not set up allocation instructions then the gift contributions are invested in the Investment Portfolio(s) for the account chosen by the Account Owner.

Q:
How will I know that my gift contribution has been received by the Account Owner?

The Plan will send you an e-mail indicating when your online contribution from your bank account is scheduled to be made and when your contribution has been processed successfully. If for some reason your contribution is not able to be processed, you will receive an e-mail or phone call from the Plan. If you make your contribution by check or if the Plan does not have your e-mail address on file, the Plan will not be able to confirm whether or not your contribution was received.

The Account Owner will receive a confirmation statement from the Plan for each contribution made to their account.

While not required, it is recommended that you maintain a record of your gift contributions.

Q:
Who can be the “Beneficiary”of an account?

Any U.S. citizen or resident, including the account holder, can be the beneficiary. The beneficiary must have a valid Social Security Number or Taxpayer Identification Number.

Q:
What are the steps to make a gift contribution?

  1. Select the Click here to make a contribution link in the eGift email invitation, or select the eGift link on social media.

  2. Your eGift code may be pre-filled at the Make an Online Gift Contribution page. If the eGift code is blank you will need to enter it.

  3. You will then be directed to the Online Gift Contribution Information page. Account owner and beneficiary names are displayed here. Please enter your name, email address, phone number, and gift contribution amount. You will also need to enter your bank account information.

  4. Please confirm that all of the information is correct on the Online Gift Contribution Verification page, and select Submit to make your gift contribution.

  5. A Thank You page will then be displayed with the details of your gift contribution and a confirmation number.

Q:
How long does it take for the Account Owner to learn about the gift?

The account owner will receive a confirmation statement within 1-2 business days after the gift has been made. The account owner will also receive a notification email 3-5 days after the gift is made indicating the name of the contributor and the gift amount.

Q:
Is the Beneficiary notified about the gift at the same time the Account Owner is notified?

The beneficiary is not notified about gift contributions.

Friends and family may symbolize their gift by downloading and printing a gift certificate for any holiday or event from baby showers to birthdays.

Q:
How will I receive the eGift Occasion invitation?

The Account Owner can either e-mail you an invitation or print and mail the invitation.

The invitation will include an eGift code identifier to ensure any gift contributions make it into the right account. Your eGift code does not expire and can be re-used.

  • E-mail Invitations
    The e-mail you receive from the Account Owner will contain an online contribution link you can use to send your gift contribution directly from your bank account via Automated Clearing House (ACH). If you wish to contribute by check, the e-mail will also include a contribute by check link.

  • Invitations sent by U.S. Mail
    If you receive a printed invitation from the Account Owner, a special payment coupon will be included at the bottom. Please include that payment coupon when mailing your gift contribution.

  • Invitations made through social media
    You may have learned about an opportunity to give a gift through a Facebook or Twitter post created by the Account Owner. To make a gift, visit scholarshare529.com/egift and enter the eGift code associated with the Beneficiary’s account.

 

Q:
How do I send a gift contribution?

You can send your gift contribution one of two ways:

  • Online from your bank account
    This method requires that you provide your banking information. By providing this information you are authorizing the ScholarShare College Savings Plan to debit a one-time gift contribution from your bank account. The Plan will not keep or store your bank account information after the gift is debited from your bank account and credited to the Account Owner's account. Your bank account will be debited on the day you make your online gift contribution request as long as it is before 4:00 p.m. ET. If it is after 4:00 p.m. ET, your bank account will be debited on the next business day. Please note it can take several days for the online contribution to be received by the Plan. The trade date will be the date your funds are received in good order.

    OR

    By Check
    This method is completed using the payment coupon you received at the bottom of the printed invitation or by selecting to contribute by check in the e-mail invitation. Please detach the payment coupon from the printed invitation or download and print it and include it with your check in one envelope. Make the check payable to the ScholarShare College Savings Plan and write the Account Owner's name on your check. Your check must be drawn in U.S. dollars from a banking institution located in the United States. Personal checks, teller's checks and bank drafts are permitted. The Plan does not accept contributions through starter checks, traveler's checks, credit card convenience checks, money orders or cashier's checks.

    Send the payment coupon and check to:

    ScholarShare College Savings Plan
    PO Box 219185
    Kansas City, MO 64121-9185

For questions call us toll-free at 1-800-544-5248.

Your gift contribution will be applied as soon as it is received by the Plan in good order.

Q:
Are contributions to an existing or new account eligible for a California state income tax deduction?

No. The state of California does not currently offer a state income tax deduction for contributions to an existing or new account.

Q:
How can I symbolize my gift in a card or present?

Download and print a gift certificate for any holiday or event from baby showers to birthdays.

Q:
Will the ScholarShare College Savings Plan send email or direct mail to me as a result of my eGift contribution?

The ScholarShare College Savings Plan will not use your eGift information for marketing purposes. However, you may receive marketing materials from the Plan if you are a California parent or grandparent. You may always opt-out of ScholarShare marketing solicitations by email or by contacting us at 1.888.338.3789.

Q:
What are the federal estate and gift tax benefits?

Contributions to a ScholarShare 529 College Savings Plan account may help you reduce the taxable value of your estate. Contributions to the Plan, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $15,000 per contributor ($30,000 for married contributors), per beneficiary. If an account owner’s contribution to a Plan account for a beneficiary in a single year exceeds $15,000 ($30,000 for married contributors), the account owner may elect to treat up to $75,000 of the contributions, or $150,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion. Consult your tax advisor.

320385
619638