529 Plan In California
The 529 plans in California are of two types like prepaid and savings. The available 529 plans in California are
1. Scholarshare Advisor College Savings Plan (SACSP)
2. Scholarshare College Savings Plan (SCSP)
Generally the 529 plans in California are sold either directly or through brokers. Let's see these two plans in detail. PROGRAM PARTICULARS OF 529 PLANS IN CALIFORNIA The program particulars of 529 plans in California are as fallows: SACSP: Program type: Savings Enroll method: Via Broker State agency's name: Scholar share investment board (SIB) Program manager: Fidelity Eligible persons: U.S residents, UGMA/UTMA custodians Higher level of contribution: Accepts the funds until it reaches $300,000 jointly in the state Preliminary contributions: $1,000 Succeeding contributions: $50 Automatic contribution plan: $50/month or $150/quarter Application fee: Nil Maintenance fee: $20 per annum Expenses for the underlying investments: 0.59 to 0.83% State Tax deduction: No Age Based options: Contains eight portfolios of mutual funds corresponding to the ages. Other Underlying investments: Fidelity advisor funds and cash reserves Number of multi fund portfolios: Two (100% and 70% equity) Number of individual fund portfolios: Thirteen Ratio of Total Asset Based Expense: 0.98%-1.59 %( class A) 1.73%-2.34 %( class B and class C) 1.48%-2.09 %( class P) Tax Exception on Qualified distributions: Yes Exclude value of account for purpose of financial aid: No Persons to which the distributions are payable: Beneficiary, Eligible Educational institution Online access to account: No Password protected in online: No SCSP Program type: Savings Enroll method: Direct State agency's name: Scholar share investment board (SIB) Program manager: Fidelity Eligible persons: U.S residents, UGMA/UTMA custodians and emancipated minors Higher level of contribution: Accepts the funds until it reaches $300,000 jointly in the state Preliminary contributions: $50 Succeeding contributions: $25 Automatic contribution plan: $15/month or $45/quarter Application fee: Nil Maintenance fee: Nil Expenses for the underlying investments: 0.42 to 0.79% State Tax deduction: No Other Underlying investments: Contains two options as actively managed mutual funds and index mutual funds. Number of multi fund portfolios: Six Number of individual fund portfolios: Six Ratio of Total Asset Based Expense: 0.50 to 1.09% Tax Exception on Qualified distributions: Yes Exclude value of account for purpose of financial aid: No Persons to which the distributions are payable: Beneficiary, Eligible Educational institution or account owner Online access to account: Yes Password protected in online: Yes The information describes the details as well as compares the two 529 plans in California. It depicts the details of the eligibility, amount of contributions, expenses, benefits of the tax exceptions and the information regarding the program managers. Guidelines before investing in the 529 plans in California In the 529 plans in California the investor should know the necessary details regarding the plan, the program manager, the plans past performance, the drawbacks of the plan, the expenses involved and the options provided by the plan.
529 Plans
|