We plugged a monthly savings of $150 into our College Savings Planner for 17 years. Then we compared the same money saved in an everyday, taxable bank* account. Remember, this is only a projection and your results could be lower or higher, much like the mutual funds in your 401(k) Plan.
*Saving $150/mo for 17 years; bank projection calculated using calcxml.com at national avg interest rate of .09%; 529 Plan projection calculated using the College Savings Planner; actual results could be lower or higher.
A state tax deduction of up to $4,000 per child, per year, is available to qualified Ohio taxpayers who contribute to Ohio's 529 Plan, whether you own the account or are making a gift to someone else's account. (If you are making a gift to an Ohio 529 through Ugift, that contribution must be received in good order before 4:00 p.m. ET on Monday, December 21, 2020.)
Ohio's 529 Plan offers a tax-free, FDIC-insured savings account and CDs from Fifth Third Bank. Some people save exclusively in these. Some move money into these as college nears or while their student is in college. And some use them for K-12 private school tuition. The choice is always yours.