Planning for the Unknown: How 529 Offers Flexibility for Families
Higher education can give your child the chance to gain the experience and skills for a bright future and a fulfilling life. But there’s no telling what your child has in mind for his or her future. Fortunately, with ScholarShare 529, the official college savings plan for California families, flexibility is part of the plan. So, whether your child wants to be a rocket scientist, welder or cheesemaker, your forward thinking can help support them.
ScholarShare 529 offers families a range of benefits, no matter where life leads. It can be used for undergraduate and graduate programs, as well as community colleges and trade schools. It’s location-friendly and can be used in-state, across the country or abroad. Account owners can change the beneficiary and move funds to a different eligible beneficiary if needed. It also offers flexible contribution options, including recurring contributions.
With ScholarShare 529, flexibility is just one of its many benefits. ScholarShare 529 can help maximize the value of your college savings with tax advantages, which can mean more money for higher education. Any growth you see over time won’t be subject to taxes if used for qualified higher education expenses.1 Tax-free withdrawals for qualified higher education expenses include tuition, room and board, books, computers and more.
Finding the investment option to match your style is simple. ScholarShare 529 offers a variety of professionally managed investment portfolios to fit your life situation, risk tolerance and college savings goals. Enrollment Year Investment Portfolios are most popular with account owners and are based upon the year your student is expected to enter school and begin withdrawing from the account. Risk-based portfolios allow you to align your investment objectives with your risk tolerance level. The Guaranteed Portfolio Option is suitable for those with shorter investment time frames and for individuals who have lower risk tolerance.
Paying for an education can be daunting, but fortunately, ScholarShare 529 has helped families rise to the challenge of affording higher education for more than 25 years. To learn more or to open an account today, visit ScholarShare529.com.
1 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.
To learn more about California’s ScholarShare 529, its investment objectives, risks, charges and expenses please see the Plan Description at ScholarShare529.com. Read it carefully. Prior to investing, check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice. 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, distributor and underwriter for California’s ScholarShare 529. 5236193
This story was originally published May 1, 2026 at 10:40 AM with the headline "Planning for the Unknown: How 529 Offers Flexibility for Families."