Planning for the Unknown: How 529 Offers Flexibility for Families
529 plans were originally just for college—but now they cover a wide range of college and career paths and costs.
A 529 plan is a flexible tool for navigating unpredictable futures. Not only do they cover an array of qualified expenses for higher education, but they can also be used for study abroad, trade schools, internships, apprenticeships, and more. And families can change beneficiaries at any time or roll unused funds into a Roth IRA. 1
A 529 plan allows you to adjust your savings strategy without losing your investment. In other words, it prepares you for whatever adventure your child chooses.
ScholarShare 529 is California’s official college savings plan. They offer a range of benefits to meet your college and career savings needs—whatever they are and whenever they happen.
1. Tax advantages
Get tax-deferred growth and 100% tax-free withdrawals on qualified expenses. 2
2. Low fees
Avoid sales charges, startup and maintenance fees—a ScholarShare 529 account could mean more money toward your savings. 3
3. Flexibility
Use savings for qualified college and career costs at eligible institutions in the U.S. and abroad—including tuition, housing, books, and more. The cost of education continues to rise and a ScholarShare 529 account can help you plan ahead. After all, they’ve helped families afford education for over two decades. Unused funds never expire and can be used later or transferred to an eligible family member or a Roth IRA (subject to rollover rules and limits). 4
4. Investment options
Determine the right strategy for you. With ScholarShare 529, you get access to investment options to fit your life situation, risk tolerance, and savings goals. With benefits like low fees and flexible investment options, your savings can grow as fast as your child.
People love to say we’ll start saving for college later. But “later” is expensive. Every dollar saved today is one less dollar you have to borrow—and one less dollar paying interest for decades.
Cassandra DiBenedetto
Executive Director, ScholarShare Investment BoardScholarShare 529 manages more than $18 billion in assets for over 500,000 accounts (as of 5/31/26)—with more than 50,000 accounts added each year. They have a history of helping families meet their college and career savings goals for over 25 years.
To learn more or to open an account, visit ScholarShare529.com.
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. 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. 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 and underwriter for ScholarShare 529. 5552671
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.
2 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.
3 Source: ISS Market Intelligence 529 College Savings Fee Analysis 1Q 2026. ScholarShare 529’s average annual asset-based fees are 0.21% for all portfolios compared to 0.47% for all 529 plans, 0.83% for advisor-sold plans, and 0.32% for direct-sold plans.
4 Funds rolled over to a Roth IRA can be withdrawn free from federal tax. For California taxpayers, earnings on these withdrawals are subject to state income tax and an additional 2.5% California tax. Account Owners and Beneficiaries should consult with a qualified tax professional before rolling over funds from their 529 plan to contribute to a Roth IRA.