The California Kids Investment and Development Savings Program (CalKIDS) is dedicated to giving families the resources to start saving for college. Administered by the ScholarShare Investment Board, this program provides eligible California children with savings accounts for future higher education expenses. Understanding and managing your money, or “Money Español” as some might search when looking for financial guidance, is crucial, and CalKIDS is a program designed to make college savings accessible to many.
CalKIDS provides seed deposits and potential incentives to help grow these college savings accounts. For complete details about the program, including terms and conditions, you can visit CalKIDS.org. It’s important for families to be informed about opportunities like CalKIDS to plan for their children’s future education.
Participants in CalKIDS also have the option to establish individual accounts with ScholarShare 529, which is California’s 529 College Savings Plan. This offers a further avenue for families to expand their college savings.
Eligibility for the CalKIDS program is determined by the Local Control Funding Formula. If you’re receiving this information, it’s because the ScholarShare Investment Board has identified you, through data from the California Department of Education, as an eligible participant. This means your child may automatically receive a CalKIDS account.
For those interested in learning more about the broader ScholarShare College Savings Plan, detailed information is available at ScholarShare529.com. You can also find a comprehensive Plan Description which outlines investment objectives, potential risks, associated charges, expenses, and other important details. It is recommended to carefully review this document before making any investment decisions.
Remember to consider your home state’s potential tax benefits or other advantages when investing in a 529 plan, as these can vary. It’s also wise to consult with a legal or tax professional to get advice tailored to your specific financial situation. Investing in the ScholarShare plan involves risks, including the potential loss of investment, and is not insured or guaranteed.
Keep in mind that if the funds from these accounts are not used for qualified higher education expenses, there may be tax implications. A 10% federal penalty tax on earnings, as well as federal and state income taxes, could apply. Additionally, non-qualified withdrawals might incur a 2.5% California tax on earnings.
The ScholarShare College Savings Plan is an initiative offered by the State of California and managed by TIAA-CREF Tuition Financing, Inc. (TFI). TIAA-CREF Individual & Institutional Services, LLC, a member of FINRA, acts as the distributor and underwriter for the ScholarShare College Savings Plan.
While the Plan website provides links to external websites for additional resources, neither the Plan nor TFI and its affiliates are responsible for the content found on these external sites, and the accuracy of their information cannot be guaranteed. Social media platforms related to the program are managed by the State of California.
