The Future Scholar 529 Plan

Information for Investors

As college costs continue to rise, now may be the best time to consider a 529 college savings plan. As a qualified tuition savings plan under Section 529 of the Internal Revenue Code, a 529 plan provides investors with a smarter way to plan for a child’s college education by offering tax advantages, gifting and estate planning benefits, flexibility and control.

Key benefits of a 529 college savings plan

  • Ability to contribute up to $14,000 per year ($28,000 for married couples), per beneficiary, without triggering federal gift taxes
  • A special five-year forward gifting provision allows for larger gifts that are also gift-tax-free
  • Contributions are considered completed gifts and are removed from your taxable estate while you as the account owner still maintain control of the assets in the account
    • This means you can change the beneficiary (to a qualified family member of the original beneficiary) if needed
    • You can also take a withdrawal from your account1
  • Earnings grow exempt from federal taxes, and in many states, also state income taxes

We have the tools you need

In addition to the important benefits of a 529 plan, the plan also offers these advantages:

  • An expanded, multi-managed investment lineup
  • Low fees — one of the lowest-cost advisor-sold plans in the country2
  • High contribution limit of $400,000
  • Joint ownership of accounts
  • The strength and stability of a well-known asset manager — Columbia Threadneedle Investments

Benefits for South Carolina taxpayers
The Future Scholar 529 Plan is sponsored by the South Carolina Office of the State Treasurer and offers South Carolina taxpayers additional tax advantages. Contributions up to the maximum account limit of $400,000 per beneficiary are tax deductible from a client’s South Carolina state income taxes.3

Financial professionals

Take a deeper look at the Future Scholar 529 Plan. Learn about benefits, pricing, performance information and more.

1 Withdrawal of earnings not used for qualified higher education expenses will be subject to federal and possibly state and local income tax and may be subject to an additional 10% penalty.

2 Among the lowest 10th percentile based on Offering Statements and Program Descriptions of 529 plan distributors as provided to

3 Contributions to a Future Scholar account are tax deductible for South Carolina residents. If you file a resident or non-resident South Carolina tax return, 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 $400,000 (or any lower limit under applicable law). When you withdraw money to pay for qualified higher education expenses, you pay no South Carolina state income tax on your withdrawals. Grow any potential earnings on contributions state- and federal-income-tax-free while invested in their account.

Please consider the investment objectives, risks, charges and expenses associated with 529 plan investments before investing. Contact your financial advisor or visit for a program brochure, which contains this and other important information about the plan. 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., member FINRA, is the distributor and underwriter for the Future Scholar 529 College Savings Plan Financial Advisor Program. 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.


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