Why Scholars Choice

As a financial professional, we realize you have many choices when it comes to your 529 plan savings business. Scholars Choice is one of the largest financial professional-sold 529 plans. Here are three reasons why financial professionals choose us:

1. Distinctive experience - With Scholars Choice, you and your clients access the capabilities of two world-class financial organizations, TIAA and Nuveen. TIAA¹ is a pioneer in the 529 industry that brings deep knowledge and demonstrated experience in managing every aspect of a successful 529 program. Nuveen, investment manager of TIAA, offers capabilities that span public and private markets, over five decades of leadership in responsible investing and a 125-year history of helping clients meet their financial goals.
2. Active/passive blend - The Plan has a dedicated team of investment professionals focused solely on managing 529 plans. The team leverages top-tier managers and highly-rated funds to take advantage of investment opportunities wherever they exist—across asset classes and market sectors. For this reason, the majority of portfolios have a smart blend of active and passive underlying funds, seeking to deliver benchmark-beating performance while maintaining competitive fees.
3. Estate planning benefits - Scholars Choice offers several tax advantages to your clients – particularly when it comes to estate planning. Contributions to 529 plans are considered completed gifts, which means current assets and future earnings are excluded from their taxable estate for federal estate tax purposes.
   
   You probably know that they can contribute up to an annual limit of $19,000 ($38,000 for joint filers), free from federal gift taxes. But did you know about the accelerated gifting benefit -- unique to 529 plans? In fact, clients can make five years’ worth of tax-free gifts in one year, but only once every five years. That means they can contribute up to $95,000 at once ($190,000 for joint filers), helping to boost their account balance while simultaneously minimizing potential estate taxes.

Scholars Choice offers distinct taxpayer advantages

Scholars Choice is the only financial professional-sold 529 plan that allows contributions to be deducted from a Colorado taxpayer’s state taxable income. For additional details, refer to the Tax FAQs.

Every state has different guidelines when it comes to state income tax advantages. When exploring 529 plan options, it is important to know what tax benefits are in place in your clients’ home state.

Now, Colorado-based business owners can get tax benefits, too

Not only can companies of any size offer a 529 plan via payroll direct deposit as an employee benefit, but recent tax legislation (2019) gives businesses a tax break when they contribute to their  Colorado-based employees' 529 accounts.

For every dollar an employer contributes to an employee's Scholars Choice 529 account, the employer receives a 20% tax credit, up to a maximum of $500 per employee per year. So, an employer could give up to $2,500 per employee and receive a $500 Colorado state tax credit for each person.