Quiz: Are You a Future Scholar Expert?
August 29, 2017
Think you know all there is to know about Future Scholar? Take our quiz to find out:
Future Scholar is the same as a 529 college savings plan.
That is correct. Future Scholar is South Carolina’s 529 college savings plan. Named after section 529 of the Internal Revenue Code, each state has its own 529 plan and South Carolina’s consistently ranks among the best in the country having received 5 out of 5 caps from savingforcollege.com.
I can get a tax deduction if I open a Future Scholar 529 College Savings Plan.
Also correct! South Carolina is one of the few states that allow taxpayers to deduct contributions to its 529 fund. Additionally, your money in a Future Scholar account grows free from federal and S.C. income taxes. Withdrawals are also tax-free as long as the money is used for qualified education expenses.
What’s more, if you file a South Carolina tax return, either as a resident or a non-resident, you may be eligible for additional tax advantages.
I can open an account for a loved one, even if I’m not the child’s parent.
That too is correct. In fact, any U.S. citizen or resident alien of legal age can open an account. There are no age, income or family relationship limits. Family members or friends can establish Future Scholar accounts for the same child, as long as the total of all accounts does not exceed $426,000 per beneficiary.
The money can be used for colleges outside of South Carolina.
True. Not only can you use the money in a Future Scholar account at any eligible educational institution in the United States, but that also includes eligible out-of-state schools, some international schools, two- and four-year public and private colleges, graduate programs and certain vocational-technical schools.
To search for eligible educational institutions, check the Federal Student Aid (FAFSA) website.
To open an account, I have to have quite a large sum of money.
Incorrect! In fact, there’s no minimum contribution required. What’s more, it’s easy to open and you can even open an account online in three easy steps.
So how did you do? Get everything correct? If so, you must be the proud owner of a Future Scholar 529 College Savings Plan and are already on your way to saving for your child’s future. Congratulations!
If not, perhaps you’d like to bone up on Future Scholar here: https://futurescholar.com/
For more quiz questions on 529 plans, keep reading: http://www.kiplinger.com/article/saving/T002-C032-S014-quiz-how-well-do-you-know-529-college-plans.html.