Investing in Education with a 529 Plan

May 29 is 529 Day, a national reminder of the importance of saving for future education costs. For families in California, where we’re fortunate to have access to exceptional public and private colleges, this day offers a timely opportunity to explore how a 529 plan can support your child’s academic goals.
 

What Is 529 Day?

Observed annually on May 29, 529 Day highlights the benefits of 529 college savings plans—tax-advantaged accounts specifically designed to help families plan and save for higher education. Whether your child is considering a UC, CSU, community college, trade school, or apprenticeship program, a 529 plan can help make those aspirations more attainable.
 

Why ScholarShare 529 Is a Smart Choice

California’s official 529 plan, ScholarShare 529, continues to provide families with flexible and tax-efficient ways to save:

• Tax-Deferred Growth - Contributions grow free from federal and California state income taxes, helping your investment compound over time.
• Tax-Free Withdrawals - Withdrawals used for qualified education expenses—such as tuition, books, supplies, and room and board—are completely tax-free.
• Greater Flexibility - Funds can be used for more than just college, including K–12 tuition, eligible apprenticeship programs, and up to $10,000 in student loan repayments per beneficiary.
• Account Control and Versatility - You maintain control of the account and can change the beneficiary or roll over unused funds into a Roth IRA (a new feature introduced under the SECURE Act 2.0).

How to Maximize Your 529 Plan in 2025

1. Start Early - The sooner you begin saving, the more time your investment has to grow. Even small, consistent contributions can make a big difference.
2. Set a Clear Goal - Estimate how much you’d like to save based on your child’s age and the type of education they may pursue. Tools on the ScholarShare 529 website can help you calculate a realistic target.
3. Choose the Right Investment Option - ScholarShare 529 offers a variety of investment portfolios—from age-based to customizable strategies—designed to align with your risk tolerance and timeline.

Get Personalized Guidance

Opening a 529 plan is an investment not just in education, but in your child’s future. If you're unsure how to get started or want to better understand your options, our Provident Financial Consultant²³³ are available to help—at no cost to you.

Call (800) 656-4096 to schedule a free consultation and start planning today.