Scholars Choice Plan Disclosure Statements
The plan for investors working with their own financial professional, offering 28 options ranging from conservative to aggressive. Ideal for all investor types.
plan managed by:
You can open an account only through a financial professional. Scholars Choice investment portfolios are managed by TIAA-CREF Tuition Financing, Inc. The team leverages top-tier asset managers and highly rated funds to take advantage of investment opportunities wherever they exist. Looking for a financial professional? Click HERE.
If you are a Colorado taxpayer, you may be eligible to deduct your contributions 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.
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 $500,000. There are no restrictions on the number of Beneficiaries or accounts per Beneficiary.
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 $16,000 ($32,000 per married couple) per year per Beneficiary.
You have the option to treat contributions of over $80,000 made in one year ($160,000 for married couples) per Beneficiary as if they were made over a five year period. Restrictions apply.
The Scholars Choice Program offers a menu of offers 28 investment options, including highly rated underlying funds.
With Scholars Choice, you and your clients access the capabilities of two world-class financial organizations, TIAA and Nuveen. TIAA is a pioneer in the 529 industry that brings deep knowledge and demonstrated experience in managing every aspect of a successful 529 program. Nuveen, investment manager of TIAA, offers capabilities that span public and private markets, over five decades of leadership in responsible investing, and a 120-year history of helping clients meet their financial goals.
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.
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, internet access, and more.
Nonqualified withdrawals from Scholars Choice that can be attributed to certain scholarships are not subject to the additional 10% federal tax generally applicable to nonqualified 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 nonqualified 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.