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Scholars Choice

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Toll Free – 888.5.SCHOLAR (888.572.4652)
Fax (508-599-4157)
Mon-Fri 7a to 8p (Mountain)
Mailing Address:

Scholars Choice
P.O. Box 9680
Providence, RI 02940-9680

Overnight Delivery ONLY:

Scholars Choice
4400 Computer Drive
Westborough, MA 01581

College is within your reach. You just need the right partner. With the Scholars Choice College Savings Program, your advisor can show you how easy it is to start saving. And when the college years come, Scholars Choice will be there to help you through them.

Scholars Choice from CollegeInvest and Legg Mason is one of the largest advisor-sold 529 plans nationwide. The Plan offers significant tax benefits, a broad range of investment options, competitive fees and an active multi-manager approach that makes Scholars Choice a solid foundation when building a comprehensive college funding strategy.

Plan Details

You can open an account only through a financial professional. You can start with as little as $250 and contribute whenever you want. The $250 is waived where the Account Owner establishes periodic automatic funds transfers to an account of $50 or greater. The minimum for subsequent contributions is only $50.

Enrollment
You can open an account only through a financial professional. Scholars Choice is managed by QS Investors, LLC and other affiliates of Legg Mason Global Asset Allocation, LLC, which has a team of some of the most skilled and experienced portfolio managers in the industry. Looking for a financial professional?   Click HERE

Access 24/7
As a Scholars Choice account owner, you can enjoy 24-hour access to your account. Register online to check your balance, make contributions or withdrawals, change your investment options, view your statements, maintain your account, download or request account maintenance forms and obtain performance information anytime you like.

Favorable Tax Treatment
If you are a Colorado taxpayer, you may be eligible to deduct your contributions dollar-for-dollar from your Colorado income taxes.

Your earnings will grow federal and state tax-free as long as the money remains in your account, and the funds are eventually used for eligible expenses.

Low Minimum Investment
You can start with as little as $250 and contribute whenever you want. The minimum for each additional contribution is only $50. You can contribute by automatic investment, check or moving assets from other 529 savings plans.

High Account Maximum
You can contribute on behalf of a beneficiary until the total balance of all CollegeInvest 529 plan accounts held for the same beneficiary reaches an aggregate maximum balance, which is currently $400,000. There are no restrictions on the number of Beneficiaries, or accounts per Beneficiary.

Estate Planning Benefits
Account contributions are considered completed gifts and, in general, will be excluded from your federal taxable estate.

There are no federal gift or generation-skipping transfer taxes on contributions of $15,000 ($30,000 per married couple) per year per Beneficiary.

You have the option to treat contributions of over $75,000 made in one year ($150,000 for married couples) per Beneficiary as if they were made over a 5-year period. Restrictions apply.

Account Owner Control
Unlike other types of college savings options, Scholars Choice allows you to maintain ownership and control over your account. The beneficiary of the account cannot make a withdrawal without your consent.

Investment Options

Our investment choices vary based on investment approach and degree of risk, so you can choose what feels most comfortable.

Scholars Choice has been ranked third (including sales charges) among all advisor-sold plans for the 1-, 3- and 5-year periods ending 9/30/17. Scholars Choice also has the third-lowest asset-based fees among all actively managed advisor-sold plans.

  View Investment Options

Investment Management by Legg Mason

The Power of Legg Mason
Individual and institutional investors worldwide look to Legg Mason to help them pursue their long-term financial goals. Legg Mason is a leading global investment company with over $745 billion in assets (as of 9/30/2017) invested worldwide, focused on long-term, actively managed strategies.

Legg Mason has assembled a team of experienced investment professionals to manage the Scholars Choice Program through active portfolio management, with a multi-manager approach. We have over a century of experience in identifying opportunities and delivering investment solutions to clients in equities, fixed income and alternatives.

The Scholars Choice management team understands the importance of college savings; after all, its members are not only experienced money managers, but they are parents too – saving for their children’s futures, just like you.

Investment returns are not guaranteed and you could lose money, including principal, by investing in these options.

Frequently asked questions about Scholars Choice:

What if my beneficiary receives a scholarship?

You can change the beneficiary on your account to another qualified family member.

You can also use your account balance to pay for qualified expenses not covered by the scholarship, such as room and board, books and required supplies, computers and software and internet access, and more.

Non-qualified withdrawals from Scholars Choice that can be attributed to certain scholarships are not subject to the additional 10% federal tax generally applicable to non-qualified withdrawals. However, the earnings portion of the withdrawal must be reported on federal and state (if applicable) tax returns.

What if my beneficiary doesn’t attend college?
You can wait, change the beneficiary on your account to another qualified family member, or make a non-qualified withdrawal. Your financial advisor can help you determine the most suitable route for your unique circumstances.
How will my Scholars Choice account affect my child’s eligibility for financial aid?
Being the account owner or beneficiary of a Scholars Choice account may impact the ability to receive financial aid or other benefits or the amount of such aid or benefits. You should consult a qualified advisor to determine how an account may affect financial aid eligibility.
Can I transfer assets from an UTMA/UGMA or a Coverdell Education Savings Account into a Scholars Choice account?
Yes. You may liquidate all or part of the assets in one of these accounts and invest the proceeds in a Scholars Choice account. The liquidation of UTMA/UGMA assets for contribution to a Scholars Choice account may be a taxable transaction. Distributions from a Coverdell ESA that are invested in a Scholars Choice account are not subject to federal income tax.