Potential Value of $1 in 18 Years*
More Money for College
Thanks to the tax advantages available with ScholarShare 529, you could have more money for college.*
- Tax-free growth on investment earnings.
- Tax-free withdrawals for qualified expenses.
- Tax-free repayment for education loans.3
*Hypothetical example. Assumes Taxable Investments/ScholarShare 529 ROI of 6% compounded annually. Tax calculations assume federal tax rate of 22% and CA tax rate of 8%. There are material differences between taxable investments and ScholarShare 529. This illustration is for informational or educational purposes only and does not constitute advice. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Be sure to consult your legal or tax professional for tax advice.
1Taxable Investments is an investment account offered by a brokerage. With a taxable account, you can invest in assets like stocks, bonds and mutual funds. As funds grow in value based on the market's performance, taxes may be owed each year on the investment income. Funds may be used for any purpose. Investment risk depends upon the underlying investment vehicle. Investments are neither insured nor guaranteed and there is the risk of investment loss.
2ScholarShare 529 is an investment account that offers tax benefits when used to pay for qualified education expenses for a designated beneficiary. As funds grow in value, based on the performance of the selected investment portfolio, taxes are tax-deferred. Withdrawals for qualified higher education expenses are tax free.
3Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan. Withdrawals for student loan repayment can be withdrawn free from federal and California income tax. If you are not a California taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances.