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:
The Scholars Choice Program offers a menu of offers 28 investment options, including highly rated underlying funds.
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.