If you live in California then you can take advantage of ScholarShare which is a 529 College Savings Plan. Since it is a state-sponsored, tax-advantaged investment vehicle, it can help and encourage families to save for future qualified higher education expenses. The plan is managed by TIAA-CREF Tuition Financing, Inc. (TFI). Account holders have lots of options since ScholarShare offers 19 investment portfolios. There is something for every savings goal and risk tolerance.
With ScholarShare you get tax-deferred growth and withdrawals free from state and federal taxes when the funds are used for qualified higher education expenses, such as tuition and fees, books or even certain room and board costs. As long as you are a U.S. citizen, or resident alien with a valid Social Security Number or Taxpayer Identification Number, you can open a new account, for as little as $25. ScholarShare has no annual account management fee, no income limit and offers a high maximum account balance.
You can trust ScholarShare. Since its inception in 1999, the number of ScholarShare accounts has grown to more than 260,000 with over $6.3 billion in total plan assets. In 2014, nearly $300 million was withdrawn by families to pay for qualified higher education expenses.
I love the fact that ScholarShare offers a “Give a Gift” option where family members and friends can open a new account as a gift or make a gift contribution to an existing one. If you have people always asking what they can get your child for their birthday, this is a great option. Be sure to follow ScholarShare on Facebook and Twitter.