By Jamese Carrell, Member Services Associate, and Carm Saimbre, External Relations Associate
In December 2019, ScholarShare 529, California’s official 529 college savings plan, announced the launch of a children’s savings account (CSA) platform to support organizations with the administration of their CSA programs. ScholarShare 529 utilizes Outcome
Tracker by VistaShare, a recordkeeping platform that allows organizations the ability to manage the children’s data, oversee savings accounts, apply incentives, communicate with parents and guardians, and report on results.
Since the CSA platform’s launch last year, ScholarShare 529 – which reached $10 billion in plan assets this past January – has built partnerships with four CSA programs across California. Additionally, despite the economic fallout of COVID-19, ScholarShare
529 continues to see families open and contribute to new college savings accounts at record levels.
“We wanted to integrate a recordkeeping platform that would make it easier for local CSA programs who are in the process of developing or contemplating a program of their own,” said Julio Martinez, executive director of the ScholarShare Investment Board.
“This platform is designed in a way so that it is available and user-friendly to foundations, community-based organizations, municipalities, states, and more.”
One of the key policy design elements in developing a CSA program is having the funds in an investment vehicle that offers potential for tax-free earnings growth, a key benefit of 529 plans. ScholarShare 529 offers these benefits and is currently only
one of four plans across the country given a Gold rating by Morningstar.
ScholarShare 529’s CSA platform enables CSA program partners to make available a portal where families can view account balances for their CSA and their own individual ScholarShare 529 account, as well as make contributions. It’s a great way for families
to see all of their college savings in one spot.
ScholarShare 529 is optimistic about the CSA movement, especially as it also develops California’s statewide CSA program known as CalKIDS, which will automatically provide all newborns in California a small seed deposit and opportunities for additional
financial incentives. The plan looks forward to building new partnerships with new and existing CSA programs, developing its statewide program, and seeing the growth of CSAs across the country.
To learn more information about ScholarShare 529 and their CSA platform, visit their website.
Email to a Friend