529 PLANS

Future Scholar 529 College Savings Plan (Direct-sold)

South Carolina

South Carolina's Future Scholar 529 College Savings Plan (Direct-sold), available on a direct basis only to those who meet certain South Carolina residency requirements, features a menu of age-based and static portfolio options utilizing Columbia and Vanguard funds.

5-Cap Rating

Resident:
Non-Resident:
?

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
4.36 5.00 4.40 4.40 0.50

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General

Program type:

Savings

How to enroll:

Enroll directly with the program. Enroll Now

Initial year of operation:

2002

State agency(ies):

Office of the State Treasurer

Program manager:

Columbia Management Investment Distributors, Inc.

Program distributor:

Columbia Management Investment Distributors, Inc.

Manager contract term:

Through September 30, 2017.

Eligibility

State residency requirements:

The account owner or beneficiary must be a resident of South Carolina, or an employee of the State of South Carolina, at the time of program enrollment.

Who can be a participant/owner in the program?

U.S. citizens and resident aliens and UGMA/UTMA custodians. The Treasurer and Program Manager may permit other persons and legal entities to open accounts; joint ownership by spouses is permitted.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in South Carolina's 529 plans for the same beneficiary reach $400,000.

Minimum contributions:

None

Investment Options

Age-based investment options:

The Age-Based Portfolios option is offered in 3 different risk levels (Aggressive, Moderate, and Conservative) each containing 6 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and based on the age of the beneficiary, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 7 Target Allocation portfolios (Aggressive Growth, Growth, Moderate Growth, Moderate, Moderately Conservative, Conservative and College),7 individual-fund index portfolios, a short-term bond fund, a money market fund, and a bank deposit account.

Underlying investments:

Columbia mutual funds, Vanguard funds, iShares Barclays TIPS Bond Fund, and a BB&T bank deposit account.

Underlying fund allocations:

Click here, you need Microsoft Excel to open this document.

Investment performance link:

Click here to visit, link to the program website containing most current performance data. Choose "direct" category.

Portfolio Fees & Performance Lookup

Click here to visit, pricing and performance details for each portfolio. Data can be plugged into FINRA's 529 Expense Analyzer.

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

None

Expenses of the underlying investments:

Ranges from 0.08% to 0.16% (portfolio weighted average) in the aged-based and target allocation portfolios, and from 0.06% to 0.25% in the individual-fund portfolios. None for the Bank Deposit Portfolio.

Total asset-based expense ratio:

0.00% - 0.25%

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions, including rollover contributions, to a South Carolina 529 plan are fully deductible in computing South Carolina taxable income. Contribution deadline: April 15 of the following year.

Value of in-state tax benefits:

Investment time horizon:
18 yrs (i.e. newborn): 0.30% annualized
10 yrs (i.e. 8-yr old): 0.54% annualized
2 yrs (i.e. 16-yr old): 2.75% annualized
Based on 7% SC tax rate. (For assumptions see 529 State Tax Calculator.)

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan are included in South Carolina taxable income to the extent of prior South Carolina tax deductions. Rollovers apparently are not subject to recapture.

State tax treatment of qualified distributions:

Qualified distributions from South Carolina and non-South Carolina 529 plans are exempt.

State tax treatment of rollovers:

South Carolina follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

Under South Carolina law, accounts in a South Carolina 529 plan are exempt from attachment, garnishment, levy, and sale under any means or final process issued by any court or bankruptcy proceeding.

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, beneficiary and institution jointly, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

Program Description

Contact

Web site:

visit Enroll Now

Telephone:

1-888-244-5674

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