Save With a 529

Save with a ScholarShare 529 account and 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

More Information

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:

  • 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.