California 529 Plans: 10 Things to Know

10 Things to Know About California’s 529 College Savings Plan: ScholarShare

  1. ScholarShare is the name of California’s state-sponsored 529 plan.
  2. The ScholarShare 529 College Savings Plan was introduced in 1998.
  3. ScholarShare is open to out-of-state enrollments. Residents across the US can enroll, not just Californians.
  4. There is no minimum contribution required to get started. With $0 or no money you can open a ScholarShare plan today. (Many 529 plans require an opening deposit of $50 to $500 but California’s 529 plan is free to enroll.)
  5. $500,000 is the maximum contribution limit. Funds may be put into any/all 529 account balances for 1 single beneficiary until the total account balances reach $500,000.
  6. The ScholarShare 529 Plan is highly rated by T. Rowe price, with 4.5 of 5 stars.
  7. Funds in California’s 529 College Savings Plan see an annual rate of return of 7% — that’s over 1,000% more than the typical high-interest savings account at the bank which gives annual rate of return of 0.49%.
  8. If you put $1,000 in a ScholarShare plan and just let it sit, in 10 years you could have $1,967. That’s nearly doubling your money.
  9. If you put $1,000 in a ScholarShare plan every year, in 10 years you’d have $15,784. Assuming a 7% annual ROI. This means you would make $5,784 just by putting your money into a 529 plan.
  10. Pay $0 in taxes on growth or interested earned in your 529 plan if the funds go towards college and other qualifying education expenses.

Funds in a California or ScholarShare 529 plan are eligible to be linked to the free Upromise Rewards program. Upromise has helped families save over $1 Billion for college. Earn cash rebates and other cash rewards to save for college. Additionally, every month 5 Upromise members win a $529 scholarship for their family’s futures scholar.

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