A Quick Glance at the California 529 College Savings Plan

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10 Quick Facts About California’s 529 College Savings Plan

  1. The name of California’s state-sponsored 529 plan is ScholarShare.
  2. ScholarShare was rolled out to Californians in 1998.
  3. But non-California residents can enroll, too. Any resident of the United States with a social security number can enroll.
  4. It’s free to enroll! While many 529’s require a minimum opening contribution, you can open a California ScholarShare 529 with literally $0 zero dollars.
  5. $500,000 is the max. Funds can be put into any/all 529 account balances for one unique beneficiary until the total account balances reach $500,000.
  6. T. Rowe Price gives the ScholarShare 529 Plan 4.5 of 5 stars.
  7. Funds in California’s 529 College Savings Plan see an annual rate of return of 7%. That’s more than 1,000% interest you’d get if you stuck your funds in a savings account at the bank.
  8. Put $1,000 in a ScholarShare plan and just let the money sit, and in 10 years you could have $1,967.
  9. Put $1,000 in a ScholarShare plan every single year for 10 years, you’d have $15,784. Assuming a 7% annual ROI, which means you could make $5,784 just by setting money into a 529 plan. $1,000 a year may seem like a lot, but it’s only $2.74 a day.
  10. Pay $0 in taxes on funds you take out of your 529 plan. As long as the funds go towards college or post-secondary tuition and other qualifying education expenses.

Did you know your ScholarShare 529 plan is eligible to be linked to the free Upromise Rewards program. Upromise has helped families save over $1 Billion for college. Join free and earn cash rebates and other free cash rewards to save money for college. Additionally, every month five (5) Upromise members win a $529 scholarship for their family’s futures scholar.

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