California’s 529 plan lets you start investing at $25. There are no income limitations, so it doesn’t matter how much you bring in each month. If you are an aggressive saver, there is a maximum cap of $350,000 that you can contribute to a California 529 plan.
Due to the portfolio selection range, the fees vary from 0.18%-0.62%.
The established TIAA-CREF Tuition Financing is the administrators of the 529 plan.
ScholarShare Investment Portfolios:
You can invest in any one or a combination of ScholarShare’s 19 investment portfolios, which vary in their investment strategy and degree of risk. ScholarShare offers three broad categories of investment options:
- Active Investment Options: The fund manager selects the securities to buy for the fund.
- Age-Based Option, actively managed: Seven single-focus actively managed portfolios.
- Passive Investment Options : Securities are selected to mirror a specific market index.
- Age-Based Option, passively managed: Nine single-focus passively managed portfolios.
- Principal Plus Interest Portfolio: Assets allocated to a Funding Agreement issued by TIAA-CREF Life Insurance Company (TIAA-CREF Life)
Total asset-based expense ratio: 0.18% - 0.62%. None for the Principal Plus Interest Portfolio.
State tax recapture provisions:
There is no state tax deduction and therefore no recapture. However, a non-qualified withdrawal by a California taxpayer is subject to an additional 2.5% California penalty tax on the earnings portion, but only if subject to the the additional 10% federal additional penalty tax.
Telephone: 1-800-544-5248 Website: www.scholarshare.com