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ScholarShare 529 NEW! PDF ReportPRO
California
California's ScholarShare 529 is available to residents of any state. It offers a variety of investment options from TIAA-CREF, T. Rowe Price, Vanguard and others. While California does not offer a state tax deduction for contributions to the plan, Scholarshare allows contributions of any dollar amount, making it easy to get started.
5-Cap Rating
| Resident: |  |
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| Non-Resident: |
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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 |
|---|---|---|---|---|
| 3.59 | 4.67 | 5.00 | 4.45 | 0.10 |
General
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees.
The plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
The best way to maximize your college savings? Start early and save often. You can get started today with easy online enrollment.
Program type:
Savings
How to enroll:
Enroll directly with the program.
Initial year of operation:
1999
State agency(ies):
The ScholarShare Investment Board (SIB) chaired by the State Treasurer
Program manager:
TIAA-CREF Tuition Financing, Inc. (TFI)
Program distributor:
TIAA-CREF Tuition Financing, Inc. (TFI)
Manager contract term:
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Eligibility
State residency requirements:
None
Who can be a participant/owner in the program?
U.S. citizens and resident aliens at least 18 years old, emancipated minors, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:
None
Contributions
Maximum contributions:
Accepts contributions until all account balances in California's 529 plans for the same beneficiary reach $529,000.
Minimum contributions:
Any dollar amount
Does the program offer an e-gifting platform for receiving gift contributions?
This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.
Investment Options
Age-based/Enrollment Year investment options:
Choose between 3 enrollment year-based options, one invested in actively-managed mutual funds, one invested in index mutual funds and another invested in funds that consider ESG criteria. Contributions are placed into the portfolio corresponding to the beneficiary's expected year of enrollment.
Static investment options:
Select among 8 multi-fund portfolios, 5 individual-fund portfolios (including the Social Choice Equity Portfolio), and a principal protection portfolio.
Underlying investments:
T. Rowe Price, TIAA-CREF, DFA, Vanguard, MetWest, PIMCO. The Principal Plus Interest Option is provided through a funding agreement with TIAA-CREF Life.
Underlying fund allocations:
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Portfolio Fees & Performance Lookup
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See Investment OptionsFees & Expenses
Enrollment or application fee:
None.
Account maintenance fee:
None.
Program management fees:
0.06% (includes 0.05% state fee) for Active, ESG and Social Choice Portfolios; 0.01% for Passive and Index Portfolios (no state fee); None for the Principal Plus Interest Portfolio.
Expenses of the underlying investments:
Ranges from 0.09% to 0.35% for Active, ESG and Social Choice Portfolios,0.03% to 0.07% for Passive and Index Portfolios
Total asset-based expense ratio:
0.04% - 0.41%
Taxes and other Benefits
Program match on contributions:
None
State tax deduction or credit for contributions:
None
State tax recapture provisions:
N/A
State definition of qualified expenses
The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs or participation in an apprenticeship program, and interest and/or principal on qualified education loans up to a $10,000 lifetime cap. This does not include tuition for elementary or secondary education. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.
State tax treatment of qualified distributions:
Qualified distributions from California and non-California 529 plans are exempt.
State tax treatment of rollovers:
California follows federal tax-free treatment.
Does the sponsoring state exclude the value of an account for state financial aid purposes?
No,, but California excludes 529 plans when considering eligibility for Medi-Cal.
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
No
Is there a rewards program or outside scholarship program that works with this program?
Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
Statutory protection of an account from creditors:
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Distributions & Terminations
To whom are distributions made payable:
Beneficiary, eligible educational institution or account owner, as directed by the account owner.
Account Changes
Policy regarding participant/owner changes:
Accepts requests to change account owner.
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:
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Plan News
- ScholarShare 529 Reaches $13B in Assets (11/22/2021)
- California expands program offering money for college savings to all students (08/23/2021)
