TIAA Fall 2025

Today’s 529 plans can be used in more ways—and at more types of schools—making them one of the smartest ways to save for education.

A 529 plan is a tax-advantaged investment account that helps families save for a range of education expenses — not just college. Most states offer 529 plans, and you can open an account with any state, regardless of where you live or where your child attends school.

The increase is for California colleges—after inflation—over the past 20 years. Source: Public Policy Institute of California

Flexible investing: Age-based, risk-based or guaranteed portfolios Simple management: Automate contributions and customize your strategy Ugift® platform: Easy for relatives and friends to contribute Fast set-up: About 15 minutes to open an account, with no minimum to get started

Choosing an investment portfolio generally involves answering a few key questions.

With "set-it-and- forget-it" growth

If you’re looking for an investment that’s customized for your student’s expected enrollment year, consider

With control over the asset allocation

If you’re an experienced investor and you want more control over your investment option’s diversification and investment strategy, consider

With safe and steady returns for short-term goals

If you have a short-term savings goal or prefer low-risk investment options, consider

All ScholarShare 529 investment portfolios are managed by TIAA-CREF Tuition Financing, Inc.—a leader with over $60B in 529 assets under management. Learn more about ScholarShare investment options.

Monthly Contribution $50 $100 $200

Starting with $1,000 and contributing monthly for 18 years

State 529 Plan $21,900 $41,000 $79,000

Traditionl Savings Account $11,900 $22,700 $44,400

Assumes a 6% hypothetical rate of return for 529 plan investments compounded annually. Assumes 0.05 APY or annual interest rate for a traditional savings account. Savings rounded to the nearest hundred. The chart is for illustrative purposes. Funds invested in a 529 plan may see higher or lower returns than illustrated in this example.

63% say college costs were a major factor in their decision to start saving.

Source: February 2025 survey of ScholarShare account owners

What if my child doesn’t go to college or use all the savings?

How do 529 plans work for legacy and estate planning?

Will 529 savings affect eligibility for financial aid?3

How much does a ScholarShare 529 plan cost?

If your child doesn’t use all the funds, you have options:

Keep the funds invested, as they never expire.

25 years of helping families save for college

Open a ScholarShare 529 account today to help your child — or grandchild — build a future with less student debt. Learn more or enroll at ScholarShare529.com.

Sponsored by TFI To learn more about California's ScholarShare 529, its investment objectives, risks, charges and expenses see the Plan Description at ScholarShare529.com before investing. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor for ScholarShare 529. 1 Source: ISS Market Intelligence 529 College Savings Fee Analysis 2Q 2025. ScholarShare 529’s average annual asset-based fees are 0.21% for all portfolios compared to 0.49% for all 529 plans, 0.85% for advisor-sold plans, and 0.34% for direct-sold plans. 2 Consult your legal or tax professional for tax advice. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings. 3 The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder’s and not the student’s. (Student assets are generally assessed at 20% whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student’s eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue. 4 Withdrawals for registered apprenticeship programs and student loans can be withdrawn free from federal and California income tax. If you are not a California taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan. 5 Withdrawals for Recognized Postsecondary Credentialing Programs—including tuition, books, equipment, supplies for the enrollment or attendance, testing fees if required to obtain or maintain a Recognized Postsecondary Credential, fees for continuing education if required to maintain an RP Credential and therapies for students with disabilities—are exempt from federal income tax. For California taxpayers, earnings on these withdrawals are subject to state income tax and an additional 2.5% California tax. Consult a tax professional for guidance. 6 Withdrawals for qualified K-12 (primary or secondary) expenses such as tuition, books, testing fees, tutoring and educational therapies for students with disabilities can be withdrawn free from federal income tax. For California taxpayers, earnings on these withdrawals are subject to state income tax and an additional 2.5% California tax. You should talk to a qualified professional about how tax provisions affect your circumstances. Ugift® is a registered service mark of Ascensus Broker Dealer Services, LLC. 4752794

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73% always look for the best value when choosing financial products.

Source: MRI-Simmons survey of California parents and grandparents with children 0 to 11

Top advice from ScholarShare parents: “Start early”

Source: February 2025 survey of ScholarShare account owners who have been owners for more than a year.

For 2025, you can contribute up to $19,000 per year as a single filer, or $38,000 as a married couple, without triggering federal gift tax. Want to give more? Accelerate your gifting with a lump-sum contribution of up to $95,000 (single) or $190,000 (married), treating the gift as if it’s spread over five years. You can give to as many beneficiaries as you’d like, free from gift tax. Consult your tax advisor for personalized guidance and learn more about gifting here.

Yes, but generally less than other savings methods.

Parent-owned 529 accounts are typically counted at only 5.6% of value in FAFSA calculations. Student-owned assets are assessed at 20% or more. Beginning with the 2024–2025 FAFSA, withdrawals from grandparent-owned 529 accounts no longer need to be reported and generally won’t reduce aid eligibility.

Note that the treatment of 529 assets may vary by school. It's best to confirm directly with the financial aid office of the colleges you're considering.

There are no sales charges, startup costs or maintenance fees for a ScholarShare 529 account. However, you will pay annual investment fees based on your chosen portfolio, which includes investment management, plan administration, and state fees. Review the fees for individual investment portfolios.

Tuition for college or trade school

Books, fees, and supplies

Computers, internet, and software

Housing and meal plans

Apprenticeship programs4

Study abroad

NEW in 2025: credentialing and continuing education programs5

New in 2025: up to $20,000 per student each year for K-12 tuition6

Open an account in 15 minutes with any dollar amount

Friends and Family can contribute through Ugift®

Easy account management with the READYSAVE™ 529 App

Does not hurt financial aid3

Parents, grandparents, anyone can open an account

Money is never lost2

Low fees1

Investment options that match your level of risk

Tax advantages

Withdraw the money—although taxes and penalties apply on earnings if not used for qualified expenses2.

Transfer the funds to another eligible family member.

Use the money for other qualified education expenses.

$33,177 average balance

$16.5 billion invested

454,000 active California accounts

As of the end of 2024:

Keep the funds invested, as they never expire.

25 years of helping families save for college