Page 24 - SBCEO Benefit Guide 19-20_FINAL

Other Benefits 24

529 College Savings Plan

SBCOE provides you with the opportunity to save for future education expenses for you and your family.

California ScholarSHARE529 College Savings Plan
Plan Benefits Save for education for any family member; funds can be used to pay for tuition,
certain room and board costs, computers and related technology expenses, fees,
books, supplies and other equipment
Up to $10,000 annually per student (for all 529 plans) can be withdrawn if used for
tuition expenses at a public, private or religious elementary, middle or high school
(K-12). See Benefit Taxation below for important details on using ScholarSHARE529
funds for K-12 tuition
Contributions You or anyone else can contribute to the account

How You Contribute You can make contributions directly or via automatic payroll deductions
Investments You choose an investment portfolio or create your own from single funds to match
your risk tolerance, timeline and investment preferences

Eligible Beneficiaries You can set (and change) the beneficiary of the account to any eligible family
member without tax consequences, including immediate family, step children,
grandparents, in laws, aunts and uncles, and first cousins

Benefit Taxation You do not have to pay federal income tax on earnings when you withdraw cash to pay
qualified expenses; some states offer tax advantages as well; contact
ScholarSHARE529 at 800-544-5248 or visit scholarshare529.com for more details

Please note that Federal legislation designates K-12 tuition, up to $10,000 per year, a
qualified 529 plan expense. Although you do not have to pay federal income tax on
earnings when you withdraw cash to pay qualified expenses, some states, including
California, do not conform to the federal legislation regarding K-12 tuition. In these
states, penalties and/or taxes may apply

If you are considering a K-12 withdrawal, consult a tax professional to determine how
it would affect your personal situation
Estate Planning Benefits When you or anyone else makes a contribution, it may qualify for an annual gift tax
exclusion of $15,000 per year for single filers and $30,000 a year for couples; the
lifetime maximum contribution is $75,000 for a single filer and $150,000 for couples