As a Section 529 plan, Scholars Choice brings you certain tax advantages that aren’t available anywhere else in the tax code.
In addition to the tax-deferred earnings growth we just discussed, withdrawals from your Scholars Choice account are taxed at the student’s rate, which is usually less than the account owner’s rate. To put this in perspective, the lowest federal tax level today is just 15%.
As we discussed earlier, contributions within certain limits are exempt from gift taxes, and may be excluded from your taxable estate.
