Save with a California ScholarShare 529 account and Kindergarten to College (K2C)! 

You now have option to move your savings from K2C into a CA 529 ScholarShare Account. Families with higher balances or students nearing graduation may be especially interested in this opportunity to maximize college savings.   

Once you open an account, the City can wire transfer your contributions and incentives directly from your K2C account into your ScholarShare 529 account. Keep at least $10 (personal contributions) in your child’s K2C account to continue to earn K2C incentives, including matches for savings and awards for participation in contests, while they remain enrolled in the school district. 

1. Open a ScholarShare 529 account at www.ScholarShare529.com or www.scholarshare-espanol.com.

2. Request to wire your K2C balance into your 529 ScholarShare Account.  

3. Connect your CA 529 ScholarShare account with K2C’s portal to see your student’s balances in one place (coming soon!).

Submit Request

When students leave the school district, K2C accounts must be closed. 

A 529 plan is an investment account that allows earnings to grow free from federal income tax when funds are used for qualified educational expenses including books, fees, supplies and tuition at universities, community colleges or trade schools.

Though there are many state 529 plans to choose from, if you open a California ScholarShare 529 account, the City can wire transfer your contributions and incentives saved with K2C directly into your ScholarShare 529 account.

Check out planning and saving for college and comparison tools on California ScholarShare’s website as you weigh your options.

ScholarShare 529 is administered by the ScholarShare Investment Board, which is chaired by California State Treasurer Fiona Ma. Since its launch in 1999, ScholarShare 529 has helped thousands of families save for a higher education and has grown its total plan assets to almost $10.5 billion as of September 2020.

CA 529 ScholarShare Brochures:

• English
• Spanish

• Learn more about the California 529 College Savings Plan, its investment objectives, tax benefits, risks, and costs, please see the Plan Description at www.ScholarShare529.com. Read it carefully.
• Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice.
• Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss.
• If the funds aren't used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings.
• The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder’s and not the student’s. (Student assets are generally assessed at 20% whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student's eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue.

This toolkit is for staff who are conducting communications and outreach about the Kindergarten to College (K2C) program at theCity & County of San Francisco, local community-based organizations, and SFUSD schools (e.g., school ambassadors) who are willing to partner with and support the Kindergarten to College program.

Want to help K2C? Are you a parent or guardian of a child attending a SFUSD school or a community member looking for a chance to help? Join us in one or more of the following ways:

• Become a K2C School Ambassador: A School Ambassador is a school staff person at an SFUSD school. An Ambassador serves as a point of contact at their school, ensuring that parents have the resources and support they need to use their child's K2C account.
• K2C Community Ambassador: A Community Ambassador helps raise awareness of K2C in their community, ensuring that parents have the resources and support they need to use their child's K2C account.
• Want to get involved? Email K2C at K2C@sfgov.org.

Want to spread the word about K2C? We're happy to help! Request K2C materials here or email us at K2C@sfgov.org. We will address the materials to you and deliver them to the school you specify.

The Kindergarten to College (K2C) savings program is excited to welcome classroom field trips to San Francisco City Hall! Students will be able to make a deposit into their K2C accounts and learn about the Treasurer’s Office during their visit. If you are interested in planning a field trip, please email K2C’s Community Engagement Specialist, Teresa Sanchez at teresa.sanchez@sfgov.org.

California's Child Savings Account Coalition developed key financial terms including 529 accounts and investments in English and Spanish.

• Incentives Only Balance

If you graduated at the end of Fall Semester 2022, and we did not receive an application from you by January 2023, any incentives awarded by Kindergarten to College (K2C), including the initial $50, was recycled back into the program for use by active K2C participants.

• Balances With Contributions and Incentives

​​​If you graduated at the end of the Fall semester 2022 and we did not receive an application from you by January 2023, then after one-year (for those with total contributions less than $15) or three years (for those with contributions of $15 or more), contributions are lost and any earned Kindergarten to College (K2C) incentives will return to the program for use by active K2C participants.

If you have special circumstances, including a disability, military service or participation in Americorps, please submit the form and the K2C team will follow up with you.

Scholarships may also be awarded by K2C or on behalf of a third party, often for participation in contests and activities, based on funding, eligibility, and objectives.

Scholarships can be earned only while a student is enrolled in an eligible SFUSD school or program. All scholarships are conditional on a student’s post-secondary educational attendance. Should a student’s K2C account be closed or if requirements for participation are not met, any incentives or scholarships awarded, could be forfeited, and return to the K2C Program.

A contribution is a deposit of funds to a K2C account by a student, family, friend, or another person for the benefit of the student. Contributions are credited to a student’s K2C account and may count towards savings-related incentives.

A gift is a deposit of funds that the K2C Program makes to a student’s K2C account on behalf of a third party, such as a company, and does not qualify towards savings-related incentives.

Total contributions and gifts made by the student, family, and friends may not exceed $35,000. Funds over this lifetime maximum may be returned to the address on file. Active participants with higher-balances or who are nearing graduation are also strongly encouraged to open a California 529 ScholarShare Account.

Before graduation or leaving SFUSD, participants may need to access funds they have contributed. Download, complete, and return K2C's special circumstances form (financial hardship or moving money to another college savings account) to k2c@sfgov.org.  

Special Circumstances Form

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• Español
• 中文
• Filipino

Effective September 2021

PROGRAM OVERVIEW
Kindergarten to College (“K2C” or “K2C Program”) accounts are deposit-only savings accounts opened and maintained by the City and County of San Francisco (“the City”) to help students enrolled in participating San Francisco Unified School District (“SFUSD”) schools and grades save for college or other post-secondary education. A student, their family, and friends, may contribute to the student’s account.

The City maintains K2C accounts at Citibank, N.A. (“Citibank”). The accounts grow through contributions, gifts, incentives, and scholarships. Students and their parent/guardian may review their K2C account balance and transaction history online at www.k2csf.org. K2C participants who transfer funds into a 529 ScholarShare Account are required to link their ScholarShare Account with K2C’s online portal (“Outcome Tracker”) so that K2C can continue to provide you information and support.

K2C may send account and program related communication for the student, as well as a parent/legal guardian, by mail, phone, email, or text.

CONTRIBUTIONS AND GIFTS
A contribution is a deposit of funds to a K2C account by a student, family, friend, or another person for the benefit of the student. Contributions are credited to a student’s K2C account and may count towards savings-related incentives.   

A gift is a deposit of funds that the K2C Program makes to a student’s K2C account on behalf of a third party, such as a company, and does not qualify towards savings-related incentives.

Total contributions and gifts made by the student, family, and friends may not exceed $35,000. Funds over this lifetime maximum may be returned to the address on file. Active participants with higher-balances or who are nearing graduation are also strongly encouraged to open a California 529 ScholarShare Account.

INCENTIVES AND SCHOLARSHIPS
Incentives include the $50 credited by the City and County of San Francisco at the opening of each K2C account and may also be awarded for meeting certain savings goals or other achievements. Check out www.k2csf.org for the latest incentives offered and related dates each school year.  

Scholarships may also be awarded by K2C or on behalf of a third party, often for participation in contests and activities, based on funding, eligibility, and objectives. Check out www.k2csf.org for any existing opportunities available.

Incentives and scholarships can be earned only while a student is enrolled in an eligible SFUSD school or program. All incentives and scholarships are conditional on a student’s post-secondary educational attendance.  Should a student’s K2C account be closed or if requirements for participation are not met, any incentives or scholarships awarded, could be forfeited, and return to the K2C Program.

K2C DISBURSEMENTS FOR HIGHER EDUCATION
When a student is ready to use their K2C funds for post-secondary education expenses, the student should visit K2CSF.org or contact K2C at k2c@sfgov.org to complete a request for disbursement of funds related to higher education.  If a student does not attend post-secondary education by age 25, K2C will disburse all contributions and gifts to the student; all incentives and scholarships will return to the K2C Program. Students who serve in a national service program, such as the US Military, Peace Corps or AmeriCorps, may defer receipt of their funds one year for each year of service, to a maximum of five years or age 30.

MOVING CONTRIBUTIONS AND INCENTIVES TO CALIFORNIA’S 529 SCHOLARSHARE ACCOUNT    
As of September 2021, K2C allows transfers of a student’s contributions and any earned incentives into a California 529 ScholarShare account. For those K2C participants who remain enrolled with SFUSD, a minimum of $10 in contributions must be kept to maintain an active K2C account, retain any earned incentives and remain eligible for future incentives.  Without a minimum balance of $10 in contributions, the K2C account may be closed, and any earned incentives could be forfeited.

WITHDRAWAL OF CONTRIBUTIONS FROM K2C FOR STUDENTS ENROLLED IN SFUSD FOR SPECIAL CIRCUMSTANCES LIKE FINANCIAL HARDSHIP
Although K2C is a deposit-only child savings account program and money saved and any incentives received must be used for qualified higher education related expenses, participants may need to access funds they have contributed to special circumstances like a financial hardship or a desire to move money into another college savings account (e.g., a 529 account other than CA ScholarShare).  From the program’s inception K2C has allowed emergency withdrawals and beginning with the COVID-19 pandemic has offered greater flexibility with withdrawals including issuing checks payable to the student and, at times, facilitating a direct bank transfer. 

Participating students age 18+ or parent/guardian of a minor student may withdraw some or all contributions and gifts in the student’s K2C account by contacting K2C at k2c@sfgov.org and completing a withdrawal form. Incentives and scholarships must remain in the K2C account for post-secondary education uses. A minimum of $10 in contributions must be kept maintaining an active K2C account, retain any earned incentives and remain eligible for future incentives.   Without a minimum balance of $10 in contributions, the K2C account may be closed, and any earned incentives could be forfeited.

K2C will facilitate a requested withdrawal as quickly as possible, but the process could take up to 30 days.

K2C ACCOUNTS ARE AUTOMATICALLY CLOSED FOR NON-SFUSD STUDENTS
As of September 2021, students who leave SFUSD or who left prior, are no longer eligible to maintain an account with K2C.  Participating students age 18+ or parent/guardian of a minor student may elect to move their contributions along with any incentives or scholarships into a California 529 ScholarShare account. Alternatively, they may request just the balance of contributions in the form of a check payable to the minor child or a bank transfer. Any incentives or scholarships will return to the program unless they are being moved to a California 529 ScholarShare Account.  Any contributions and gifts that have not been returned to the participant after one year (less than $15 balance) or three years (more than $15 balance) may be escheated to the City.

VOLUNTARY ACCOUNT CLOSURES REQUESTS FOR THOSE WHO REMAIN ENROLLED IN SFUSD
K2C participants who remains enrolled with SFUSD, may voluntarily elect to close their K2C account. If a student has any contributions in their K2C account, students age 18+ or parent/guardian of a minor student may elect to move their contributions along with any incentives or scholarships into a California 529 ScholarShare account.  Alternatively, the parent/guardian may request the balance of just the contributions in the form of a check made out to the minor child or a bank transfer.

Any incentives or scholarships will return to the program unless they are being moved to a ScholarShare 529.  Any contributions and gifts that have not been returned to the participant after one year (less than $15 balance) or three years (more than $15 balance) will be escheated to the City.

K2C program rules are subject to change. For more information about the K2C program, go to www.k2csf.org.

K2C, K2C Kids to College (logo), Kids to College, and the Kids 2 College (logo) are registered service marks of The Sallie Mae Fund, a charitable organization sponsored by Sallie Mae, Inc. The Sallie Mae Fund, including its parent, affiliates, and subsidiaries, are not affiliated with the City and County of San Francisco’s Kindergarten to College Program. Visit TheSallieMaeFund.org to learn more.

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