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If you are expecting a federal or state tax refund this year, plan now to grow your college savings with these funds. It’s an easy way to increase your savings quickly.
State of Ohio refunds
Ohio taxpayers who file electronically using the free Ohio I-File system can choose to deposit their Ohio tax refund directly to their existing CollegeAdvantage Direct 529 Savings Plan accounts. If you want to deposit only a portion of your state tax refund, you can do that, too. Check the Ohio tax website for I-File instructions, refund allowances, and processing requirements. Many tax preparers also use I-File; just ask about this option. When you enter your account number in the I-File system, you will need to enter your 11-digit account number (without the hyphen).
After you receive your federal tax refund, you can simply make an online contribution to your account or send a personal check made payable to: Ohio Tuition Trust Authority, CollegeAdvantage Direct 529 Savings Plan, P.O. Box 219305, Kansas City, MO 64121-9305. Write your 11-digit Direct Plan account number in the memo line of the check.
A good time to plan
Tax season is a good time to plan ahead for all of your financial goals for the rest of the year. Use this time to take another look at your college savings goals, assess your progress, and plan your savings strategy. Remember, an easy way to stick to your goals is to set up an Automatic Investment Plan (AIP) for monthly or quarterly automatic contributions to your college savings account. Log in to your CollegeAdvantage Direct Plan account at www.CollegeAdvantage.com, select your account, click on Asset Management, and then Automatic Investments.
Posted on March 17, 2015