State Plan

California 529 Plan

California offers two 529 college savings plans. One is a tradition 529 savings plan called ScholarShare College Savings Plan and the other is an advisor-sold tuition plan called ScholarShare Advisor College Savings Plan.

ScholarShare College Savings Plan

ScholarShare College Savings Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct – this California 529 plan can be purchased directly.

Fund Family: TIAA-CREF, T. Rowe Price, DFA, PIMCO,

Minimums: To get started you can deposit $50. With an automatic plan you can contribute $15 month.

Maximum Contributions: You can contribute until your account balance hits $350,000 in your California 529 plan. Of course, your total amount in the plan can be higher as your investments group. 529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits: In and out-of-state participants get the federal tax benefits. California residents do not pay income tax on earnings from plan distributions if used to pay for qualified higher education expenses.

Residency: The ScholarShare College Savings Plan is open to all United States residents, not just those in California.

You can learn more about the this 529 plan at the official web site.