529 College Savings Day Gets Even Better with New Legislation that Offers a $10,000 Tax Deduction When Investing in a ScholarShare 529 Savings Plan

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SACRAMENTO, Calif., May 28, 2019 (GLOBE NEWSWIRE) -- As California and the nation prepare to celebrate College Savings Day on May 29, State Treasurer Fiona Ma is urging legislators to provide a state income tax deduction for those who contribute to ScholarShare 529 college savings plan.

Assembly Bill (AB) 211 would provide a state income tax deduction up to $10,000 for those who contribute to a ScholarShare 529 college savings plan. Authored by Assembly Majority Leader Ian Calderon and sponsored by State Treasurer Fiona Ma it is designed to help families and individuals save and plan for the spiraling cost of higher education. Under the bill, people who contribute to one or more ScholarShare 529 accounts receive a state income tax deduction up to $5,000 for single taxpayers and $10,000 for those who file jointly.

“Providing a state income tax deduction would make ScholarShare 529 an even better tool for California families that want to save for their children’s college education and eliminate future student loan debt,” said State Treasurer Fiona Ma. “ScholarShare 529 can help every family reach the American dream of attaining a higher education for their children. The contributions families make today pay off in the form of an increased earning potential in the future, with a college graduate earning 50 percent more than a high school graduate.”

The average student loan debt is $36,521.  According to the U.S. Department of Education’s College Affordability and Transparency Center, there is $1.48 trillion total student loan debt in the United States . That’s up from $620 billion in 2008, according to the Federal Reserve Bank of New York. When Californians are saddled with student loan debt, they are not able to buy homes, cars, and other products that boost the economy.

AB 211 makes California’s strong and vibrant ScholarShare 529 savings program even more appealing. And it goes hand in hand with the recently introduced Senate Concurrent Resolution 37 (SCR 37) to officially designate May 29  as 529 College Savings Day. SCR 37 aims to raise awareness of the importance of saving for higher education and to let California families know they can save more easily with the help of a ScholarShare 529 college savings plan.

To celebrate 529 College Savings Day, ScholarShare 529 is offering a four-day matching promotion to help families kick start their college savings and free their future graduates from the burden of student debt.

To be eligible for the matching promotion, participants must open a new ScholarShare 529 account between May 28 and May 31, 2019, with a minimum $50 deposit—to be contributed and invested at the time the new account is opened—and sign up for an Automatic Contribution Plan of $25 or more for a minimum of six months.

A matching deposit of $50 will be made to the eligible ScholarShare account on or before 11:59 p.m. PST on January 31, 2020. There is a limit of one matching deposit per new ScholarShare 529 account opened for each new beneficiary.

Visit  for more information and complete terms and conditions.

Saving for college can be overwhelming. Sometimes the hardest part is just getting started. That’s why ScholarShare 529 is also introducing a new digital information kit to help consumers better understand and make informed decisions about saving for college. To review the materials in the digital information kit, visit .

The ScholarShare 529 College Savings Plan has been extremely successful with currently more than 321,000 accounts and over $9 billion in total Plan assets. In 2018 alone, more than $513 million was withdrawn for qualified higher education expenses and funds were distributed directly to at least 1,058 colleges and universities, helping students meet their higher education goals.

 

Contact:
Rebecca Sitorus
rebecca.sitorus@finnpartners.com
909.831.3973

More news and information about ScholarShare 529

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Globe Newswire: 16:00 GMT Tuesday 28th May 2019

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