California has a “529” Tax-Favored College Savings Program
In case you didn’t know it, California maintains a tax-favored “529” savings program for college tuition (and related college expenses) that works something like an IRA. It can be used for any qualified institution nationwide, not just UC. Details are at https://www.scholarshare.com/home.shtml Excerpt: Contributions and Any Earnings Used to Pay for Qualified Higher Education Expenses are Federal and California Income Tax-free. The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and California income tax. Federal Estate and Gift Tax BenefitsContributions to ScholarShare may reduce the taxable value of your estate. For…