CALIFORNIA

California Golden State ScholarShare College Savings Trust

Type: Savings

Phone: 877-728-4338

State tax deduction for residents: No deduction

Open to nonresidents: Yes

Refund provisions: Federal income tax penalty of 10% of earnings plus state 2.5% penalty

Minimum/maximum contributions: $25 / $275,000

In this TIAA-CREF plan, you can choose a standard or (somewhat) aggressive age-based portfolio, or fixed portfolios that are invested 100% in stocks or 100% in a socially conscious stock fund (a rarity in 529 plans), or in an interest-bearing account with a minimum return of 3%. A shortcoming of the plan is that it has no fixed-income portfolio. Expenses are low at 0.7% to 0.8% per year. California residents should be aware that the state charges a penalty of 2.5% on earnings for nonqualified withdrawals, in addition to the 10% federal penalty. However, qualified withdrawals are now state (and federal) tax-free.

State College Savings Plans