About 529 Plans

What is Future Scholar?

Future Scholar is a qualified 529 College Savings Plan that gives you a smarter way to save for a child's college education. Tax advantages, flexibility, control and professional investment management help make Future Scholar an attractive choice over many other college savings vehicles.

It's easy to get started

Opening a Future Scholar account to save for a loved one's education is easier than ever:

• No minimum contribution amount allows you to save based on your budget
• Our Automatic Contribution Plan allows you to transfer funds directly from your checking or saving account on file into your Future Scholar account
• Maximum account balance for all account owners is $318,000 per beneficiary¹, allowing for substantial education savings

View comparison of the 529 plan to other investment vehicles.

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Anyone can contribute

Any U.S. citizen or resident alien of legal age can open a Future Scholar account, regardless of income level and anyone can be a beneficiary, regardless of age. There are no upper income limits of limits on how many accounts can be set up by, or for, the same person.

How much can I contribute?

Future Scholar has a high maximum contribution limit. Currently, you may contribute to an account until the balance reaches $318,000.³

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Benefit from tax advantages

As a 529 plan, Future Scholar is designed to help you meet the rising cost of college by providing you with tax advantages not offered by other college savings vehicles.

• All of your Future Scholar earnings grow exempt from federal income taxes.²
• Pay no federal income taxes when you withdraw your money to pay for qualified higher education expenses.²
• You can contribute up to $70,000 ($140,000 for married couples) in a single five-year period without incurring gift taxes, as long as there are no further gifts made to the child in the same five-year period.⁴ Contributions of up to $14,000 per year ($28,000 for married couples) can be made without incurring federal gift taxes.
• Contributions are considered completed gifts and are excluded from your taxable estate, even though you as the account owner maintain control of the assets in the account.

South Carolina Taxpayers

If you file a resident or non-resident South Carolina tax return you may be eligible for additional tax advantages.

• You may be eligible to deduct your Future Scholar contributions from your South Carolina state income tax return, up to the maximum account balance limit of $318,000 or any lower limit under applicable law.³
• Earnings grow exempt from South Carolina state income taxes.²
• Pay no South Carolina state income taxes when you withdraw money to pay for qualified higher education expenses.²

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Choose your own investments

Whether you're looking for the convenience of a ready-mixed investment portfolio, or you'd rather choose your own investments, Future Scholar offers a broad range of investment choices that may be suitable for your family's situation.

Future Scholar offers three investment options, each with a variety of portfolios designed to help meet your college saving needs:

• An age-based option, where you can select from one of three age-based target allocation tracks, based on your beneficiary's age and your personal risk tolerance
• A target allocation option, where you can choose from among seven asset allocation portfolios ranging from aggressive to more conservative
• A single-fund portfolios option, where you to select from a variety of portfolios that invest in a single underlying fund, allowing you to customize your portfolio mix

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Maintain flexibility and control

Assets in a Future Scholar account remain in the account owner's control for the life of the account, unlike traditional UGMA/UTMA accounts, where assets are legally transferred to the beneficiary's control upon reaching age of majority.

You can use the money in your account to pay for the beneficiary's educational expenses at any eligible educational institution. This includes public and private colleges, universities, community colleges and most vocational and technical schools. Expenses include tuition, room and board and other required supplies.

If your child receives a scholarship or decides not to attend college, you still have the flexibility to:

• Change the beneficiary to another member of the family of the original beneficiary, without penalty.
• Leave the assets in the existing account for future use.
• Make a non-qualified withdrawal from the account. Non-qualified withdrawals will be subject to a federally mandated 10 percent penalty on the earnings. Additionally, any earnings will be subjected to any applicable federal and state taxes at the owner's current tax rate.

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¹ Account balances can grow beyond the maximum limit as established by the South Carolina Office of State Treasurer. However, once the market value reaches the maximum limit, contributions are no longer permitted. The maximum account balance is subject to change.

² Tax treatment varies by state. The tax information set forth on this website is general in nature and does not constitute tax advice on the part of Columbia Management Investment Distributors, Inc., its affiliates or the South Carolina Office of State Treasurer. Please contact your tax advisor before making any tax related decisions.

³ Lower limits may be set by South Carolina state law. Distributions not used for qualified education expenses must be included in South Carolina gross income to the extent those amounts were previously deducted from South Carolina taxable income.

⁴ Contributions between $14,000 and $70,000 made in one year can be prorated over a five-year period without incurring gift taxes or reducing your federal unified estate and gift tax credit. If you contribute less than the $70,000 maximum, additional contributions can be made without incurring federal gift taxes, up to a prorated level of $14,000 per year. Gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given Beneficiary in the year of contribution. For contributions between $14,000 and $70,000 made in one year, if the account owner dies before the end of the five-year period, a prorated portion of the contribution may be included in his or her taxable estate. Columbia Management Investment Distributors, Inc., or its affiliates does not provide tax advice. Please consult your tax and/or legal advisor for such guidance.

Please remember there’s always the potential of losing money when investing in securities.

Please consider the investment objectives, risks, charges and expenses carefully before investing in the Future Scholar 529 College Savings Plan. Contact your financial advisor or Columbia Management for a Program Description, which contains this and other important information. Read it carefully before investing. You should also consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Columbia Management Investment Distributors, Inc., distributor and underwriter.

The Direct Plan is sold directly by the Program and is limited to a specific group of investors, as described in the Program Description. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors. The Advisor Plan offers additional investment choices, but the fees and expenses are higher. Please contact your financial advisor for additional information on the Advisor Plan.

The Future Scholar 529 College Savings Plan and Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA.

Columbia Management Investment Distributors, Inc., member FINRA, is the distributor and underwriter for 529 plans available through Columbia Management. The Office of State Treasurer of South Carolina (the State Treasurer) administers the Program and has selected Columbia Management Investment Advisers, LLC and Columbia Management Investment Distributors, Inc. (Columbia Management) as Program Manager. Columbia Management and its affiliates are responsible for providing certain administrative, recordkeeping and investment services, and for the marketing of the Program. Columbia Management is not affiliated with the State Treasurer.