Scholar’s Edge combines the key benefits of a 529 savings plan with the key features you expect from Principal.
Flexibility, control, and tax-deferred growth.
Features & benefits
Key benefits of a 529 plan
- Tax deferred growth of investment earnings
- Tax-free withdrawals for qualified expenses
- Income tax deductions for certain states
- Apply funds toward a range of qualified higher education expenses
- Control portfolio selection and distributions
- Transfer account assets to another family member if the original beneficiary no longer needs the funds for college
Key features of the Scholar's Edge 529 Plan
- Deep asset allocation expertise – Principal is the largest provider of active, multi-managed target date funds in the United States2
- Robust and sophisticated glide path technology
- Comprehensive range of investment options – 11 year of enrollment portfolios, 4 target risk portfolios, and 15 individual portfolio options
- Capital preservation portfolio
We've improved Scholar’s Edge to make life's important choices even easier, offering choice, value and peace of mind:
- Comprehensive range of investment options
- Low minimum investment with as little as $1
- High maximum investment of $500,000 per beneficiary
- No income limit – no matter your salary, you can start saving in the Scholar's Edge 529 Plan
- Online functionality, resources and tools to easily manage your account
1 Please note: earnings on unqualified withdrawals are subject to federal income tax and a 10% federal tax penalty, as well as state and local income taxes. Tax and other benefits are contingent on meeting the requirements, and withdrawals are subject to federal, state, and local taxes.
2 Based on Sway Research 2022 Report. Rating refers to the AUM in the U.S. market. This ranking includes both Target Date CIT and Target Date funds.