Reporters
may contact:
Brent Weaver, SC Office of State Treasurer, 1.803.737.2665
Connie Lee, RF Binder Partners, 1.212.994.7542
Jennifer Tice, Bank of
America
,
1.212.933.2559
MEDIA
ALERT *** MEDIA ALERT *** MEDIA ALERT *** MEDIA ALERT
Special
Year-End Tax Deduction Deadline Approaches
For
South Carolinians
Saving for College
--
South
Carolina
’s “Future
Scholar” 529 College Savings Plan Available
For Tax-Deductible
Contributions --
COLUMBIA
,
S.C.–
Residents of
South Carolina
who are saving for college only have until
December 31 this year to make tax-deductible contributions to their Future
Scholar 529 college savings plan, State Treasurer Grady Patterson reminded
consumers today. Because of
legislation approved this year, the situation will change beginning in 2003,
when
South Carolinians
will have until April 15 of the following year to
make tax-deductible contributions to the state’s Future Scholar plan.
Introduced
in March 2002, the Future Scholar 529 College Savings Plan has won the highest
ratings from Joseph Hurley – a leading 529-plan expert and founder of Saving
for College.com
Future
Scholar, born from section 529 of the Internal Revenue Code, provides
South Carolina
families with a smart way to save for college –
combining federal and state tax advantaged savings, flexibility and the benefit
of professional investment management.
South Carolinians
who invest in Future Scholar can benefit from the
following significant advantages:
ü
Tax
free growth. Future Scholar contributions and earnings grow free
from federal and
South
Carolina
state income taxes while invested in the plan.
ü
Tax
free withdrawals. Pay no
federal or
South Carolina
state income taxes when money is withdrawn to pay
for qualified educational expenses
ü
State tax deduction -
South Carolinians
can deduct Future Scholar contributions from their
South Carolina
state income tax return, up to the maximum account balance limit of $250,000.
ü
Flexibility.
Anyone
can open a Future Scholar account regardless of income level and anyone can be a
beneficiary regardless of age.
ü
Control.
Assets in a Future Scholar account can be used at
virtually any accredited school in the country and can be used to pay for
tuition, room and board, books, computers and other required supplies.
ü
Professional
investment management —
Investments in Future Scholar portfolios will are managed by Banc of America
Advisors, LLC., and include investments in Nations Funds, the 10th-largest
mutual fund family in the United States.
“This one-time change in cut-off dates, from this year to next, for
South Carolina
residents who want to make 529 tax-deductible
college savings contributions could result in some families missing out on a
valuable opportunity to sock away savings for college expenses,” explained
Treasurer Patterson. “We want to
make sure everyone is aware of the fast approaching year-end deadline for
2002.”
The Office of State Treasurer administers a second 529 plan – the South
Carolina Tuition Prepayment Program. The
Tuition Prepayment Program offers the same State and federal tax benefits as the
Future Scholar Plan and allows families to purchase tuition at today’s rates
for a child’s future benefit.
South
Carolinians
who
require more information on either of the 529 plans, or who wish to make a
deductible contribution by this year’s deadline,
December 31, 2002
, should call their investment professional, visit
a local Bank of America banking center, log on to www.state.sc.us/treas, or call
toll-free 1-888-772-4723.