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 Pay no federal or South Carolina state income taxes when money is withdrawn to pay for qualified educational expenses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.