Pay Tuition, Not Taxes, With ScholarShare

Apr 10, 2001, 01:00 ET from ScholarShare

    SACRAMENTO, Calif., April 10 /PRNewswire/ -- With the tax filing deadline
 just one week away, California State Treasurer Philip Angelides reminded all
 Californians of a simple, but important way to save money for college
 -- without paying taxes on investment earnings.  Angelides is Chair of the
 ScholarShare Investment Board, which oversees a new college savings plan that
 offers significant tax savings.
     Rated the number two college savings plan in the country by Kiplinger's
 Personal Finance Magazine, California's one-year old ScholarShare program has
 earned a reputation as a low cost, solid investment choice.
     Anyone can open a ScholarShare savings account with a minimum
 $25 contribution.  Maximum contributions can be as high as $165,000.  State
 and federal taxes on ScholarShare earnings are deferred until the funds are
 withdrawn for tuition and higher education expenses.  Then, taxes are based on
 the student's tax bracket, which is usually much lower than the adult's who
 opened the account.
     By contrast, earnings on other types of investments, such as savings
 accounts or mutual funds, are taxed each year.  ScholarShare account earnings
 are only taxed when funds are withdrawn, leaving those earnings free to
 compound account balances over the years.
     "ScholarShare has enormous potential for families who want to do the best
 for their children, but worry whether they can save fast enough to keep pace
 with the rising costs of putting a daughter or son through college," Angelides
 said.  With the cost of a four-year college education expected to triple in
 18 years -- to $100,000 at a public university and more than $200,000 at a
 private college -- the benefits of ScholarShare become a crucial advantage.
     To open a ScholarShare account, visit www.scholarshare.com or call toll
 free 877-728-4338.
 
     Key facts about the ScholarShare college savings plan:
 
     -- Participants may invest funds in one of four options-the Age Based
 Allocation Option, the Equity Option, the Social Choice Equity Option, or a
 Guaranteed Option.
     -- Funds may be used at qualified higher education institutions
 (colleges, universities, trade and vocational schools) in the United States,
 and some internationally, or for graduate school.
     -- ScholarShare funds enjoy tax-deferred benefits on both state and
 federal levels.  Investments grow until the money is used for educational
 expenses, and taxed at the beneficiary's lower tax rate.
     -- Contribution limits are higher ($115,000-165,000) than Education IRAs.
 There are no income limits.  Minimum contributions are as low as $25, or
 $15 with payroll deduction.
     -- Over 35,000 ScholarShare accounts have been opened, with assets over
 $138 million.
 
 

SOURCE ScholarShare
    SACRAMENTO, Calif., April 10 /PRNewswire/ -- With the tax filing deadline
 just one week away, California State Treasurer Philip Angelides reminded all
 Californians of a simple, but important way to save money for college
 -- without paying taxes on investment earnings.  Angelides is Chair of the
 ScholarShare Investment Board, which oversees a new college savings plan that
 offers significant tax savings.
     Rated the number two college savings plan in the country by Kiplinger's
 Personal Finance Magazine, California's one-year old ScholarShare program has
 earned a reputation as a low cost, solid investment choice.
     Anyone can open a ScholarShare savings account with a minimum
 $25 contribution.  Maximum contributions can be as high as $165,000.  State
 and federal taxes on ScholarShare earnings are deferred until the funds are
 withdrawn for tuition and higher education expenses.  Then, taxes are based on
 the student's tax bracket, which is usually much lower than the adult's who
 opened the account.
     By contrast, earnings on other types of investments, such as savings
 accounts or mutual funds, are taxed each year.  ScholarShare account earnings
 are only taxed when funds are withdrawn, leaving those earnings free to
 compound account balances over the years.
     "ScholarShare has enormous potential for families who want to do the best
 for their children, but worry whether they can save fast enough to keep pace
 with the rising costs of putting a daughter or son through college," Angelides
 said.  With the cost of a four-year college education expected to triple in
 18 years -- to $100,000 at a public university and more than $200,000 at a
 private college -- the benefits of ScholarShare become a crucial advantage.
     To open a ScholarShare account, visit www.scholarshare.com or call toll
 free 877-728-4338.
 
     Key facts about the ScholarShare college savings plan:
 
     -- Participants may invest funds in one of four options-the Age Based
 Allocation Option, the Equity Option, the Social Choice Equity Option, or a
 Guaranteed Option.
     -- Funds may be used at qualified higher education institutions
 (colleges, universities, trade and vocational schools) in the United States,
 and some internationally, or for graduate school.
     -- ScholarShare funds enjoy tax-deferred benefits on both state and
 federal levels.  Investments grow until the money is used for educational
 expenses, and taxed at the beneficiary's lower tax rate.
     -- Contribution limits are higher ($115,000-165,000) than Education IRAs.
 There are no income limits.  Minimum contributions are as low as $25, or
 $15 with payroll deduction.
     -- Over 35,000 ScholarShare accounts have been opened, with assets over
 $138 million.
 
 SOURCE  ScholarShare