The cost of higher education is only going up, but that shouldn’t get you down. Saving for college doesn’t need to be a burden. With ScholarShare 529, there’s no big upfront investment and getting started takes about as long as grabbing a cup of coffee.
With ScholarShare 529 you can easily open an account in just 15 minutes and easily manage it online or by mail. By setting up recurring contributions from your bank account or by payroll direct deposit (if supported by your employer), making regular contributions is hassle free.
Your earnings, if any, are free from federal income tax when used for qualified expenses. In the meantime, your contributions are reinvested automatically so your account can grow more than a taxable account over the same period.
Funds can be used at any accredited university, college or vocational school nationwide — and many abroad. Basically any institution eligible to participate in a federal student aid program qualifies. In addition, up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal tax if used for tuition expenses at a public, private or religious elementary, middle, or high school.
Please see the state tax treatment of withdrawals used for K-12 school tuition here.
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. In addition, up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal tax if used for tuition expenses at a public, private or religious elementary, middle, or high school.
Please see the state tax treatment of withdrawals used for K-12 school tuition here.
Many parents worry that a 529 Savings Account can adversely affect eligibility for financial aid. So long as the parent is the account owner, funds are typically treated as belonging to the parent, not the child, minimizing the impact on financial aid.*
Open an account with any dollar amount. Since there are no application, sales, or maintenance fees, it’s affordable even for those on a modest budget.
You don’t have to do it all on your own! Grandparents as well as other family and friends can make gifts to your account for maximum growth potential.
If it turns out your child or grandchild doesn’t need all the money or their education goals change, you can designate a new beneficiary penalty-free so long as they’re an eligible member of your family.
ScholarShare 529 provides a variety of professionally managed investment portfolios to choose from including Enrollment Year Investment Portfolios that automatically shift from more aggressive to more conservative investments as your child approaches their expected year of enrollment in school. Alternatively you can tailor your portfolio with Multi-Fund, Single Fund and a guaranteed option to match your risk tolerance, timeline, and investment preferences.
When you or anyone else makes a contribution, it may qualify for an annual gift tax exclusion of $15,000 per year for single filers and $30,000 a year for couples. As a 529 Plan, ScholarShare 529 is the only investment that allows you to give up to 5 years’ worth of gifts at one time — for a maximum of $75,000 for a single filer and $150,000 for couples
OPEN AN ACCOUNT
Open your account online today and your ScholarShare 529 account could be growing by bedtime.
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