The benefits of a 529 account can help make your child's future brighter
Opening a 529 college savings account can be a smart way to save for your child's higher education.
The tax advantages, low fees and flexibility of our 529 account allows you to support your child's dreams for their future. Plus, you can easily invite family and friends to join the savings journey with Ugift®.
Remember: Every dollar saved today may be one less dollar borrowed in the future.
Tax-advantaged growth potential
You could save more with a ScholarShare 529 account. Get tax-deferred growth and 100% tax-free withdrawals on qualified expenses.
How to maintain more of your potential growth
This chart illustrates the hypothetical growth of an initial $2,000 investment and a monthly $200 contribution over 18 years in a taxable account vs. a tax-deferred account, assuming a 7.28% annual return. Based on past performance and does not predict or guarantee future results. Click here for chart assumptions.
Taxable account at 18 Years Total: $75,498.91
100% tax-deferred account at 18 Years Total: $93,431.79
- Amount of taxes that could be saved: $17,932.88
Read about material differences between taxable investments and tax-deferred investments.
You have options for how you save and use your savings
Low fees
There are no sales charges, startup fees or maintenance fees associated with ScholarShare 529 accounts. That could mean more money for you to put toward your savings2
Flexibility
Use savings for qualified education costs at eligible institutions in the U.S. or abroad—including tuition, housing, books and more. Unused funds never expire and can be used at a later time, or they can be transferred to an eligible family member or a Roth IRA (subject to rollover rules and limits).3
Investment options
Our experienced investment team provides access to diverse investment options to align with your investment strategy and preferred level of involvement all while keeping costs low.
Read more about investment options.
Strategic savings
Saving for education can feel overwhelming, but we're here to help. See how your contributions can add up with our tools designed to track your progress and highlight the impact of compound growth.
Learn how our 529 works.
Keep track of your education savings on the go
Open and manage your 529 account with the ReadySave™ 529 app.
- Monitor your savings progress and track your goals
- Check your account balance or investment allocations
- Easily make one-time or recurring contributions
- Invite family and friends to contribute with Ugift®
Have more questions about ScholarShare 529 benefits?
With your ScholarShare 529, you're never locked in. You'll always have access to several options for this money:
- Your funds can be used to pay for a variety of eligible education expenses, including at any accredited college, university, apprenticeships, community college or postgraduate program in the United States—and even some schools abroad.1
- Your 529 can be used for student loan repayment up to a $10,000 lifetime limit per individual.1
- Up to $10,000 annually can be used toward K-12 tuition (per student).2
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild, yourself or a friend.
- If you just want the money back, you can withdraw the funds at any time. If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the "Additional Tax"). Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings. See the Plan Description for more information and exceptions.
- Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So if your child changes their mind down the road, your savings will still be available.
Footnotes
- 1Withdrawals for registered apprenticeship programs and student loans 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. Read about eligible education expenses.
Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.↩ - 2Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school can be withdrawn free from federal tax. For California taxpayers these withdrawals are subject to state income tax and an additional 2.5% California tax. You should talk to a qualified professional about how tax provisions affect your circumstances.↩
Your contributions will always be yours, and you do not need to be a resident of California to open, contribute to or use a ScholarShare 529. Your ScholarShare 529 can also be used for a range of qualified expenses in state, out of state and abroad. If you move to another state, you can keep your money invested and continue making contributions to your ScholarShare 529 account—no problem!
Assets in a parent-owned 529 account have less of an impact on financial aid than some other savings methods. Expected Family Contribution (EFC) calculations for financial aid generally factor parent assets outside of retirement savings at approximately 5%, whereas student assets are generally factored in at 20% or more. Therefore, a parent-owned 529 account may have less of an impact on financial aid eligibility than assets owned by the student.1
Footnotes
- 1The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder's and not the student's. (Student assets are generally assessed at 20%, whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student's eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue.↩
A California state plan has been the preferred choice for thousands of families for 25 years, with over 467,000 accounts and $8.2 billion in qualified distributions.1 The California Board of Trustees selected TIAA-CREF Tuituion Financing, Inc. (TFI) as ScholarShare 529's Plan Manager.
Footnotes
- 1Based on statistics provided as of 6/30/25.↩
