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CollegeAdvantage Direct Plan Recognized As A Top 529 Plan

Morningstar Inc. recently released its findings into the best college savings plans for 2016. And CollegeAdvantage, Ohio’s 529 Savings Program, is happy to announce that our Direct 529 Plan has retained the Silver rating.

Since 2009, the CollegeAdvantage Direct Plan has been consistently rated as a top plan by industry ratings firm Morningstar. According to Morningstar, plans receiving a top rating “stand out because of generally attractive investment lineups, well-resourced asset-allocation teams, capable oversight, and competitive fees.” In 2016, the Direct Plan was recognized as a Silver Plan, one of the top 13 529 plans out of 63 reviewed.

Rankings are based on five key pillars:

Process — What investment options are offered;

People — Who are the underlying fund managers and their expertise?

Parent — How is strong is the oversight of the program manager?

Performance — How are the investment options performing and does it set a strong precedence?

Price — Are the investment options offered of worth to the account owner and does the program offer low fees? Morningstar also examined the tax breaks offered with each 529 plan.

Morningstar likes what it sees in the CollegeAdvantage Direct 529 Plan. According to the Morningstar analyst’s report, “Thanks to low fees and an impressive investment lineup, Ohio's direct-sold CollegeAdvantage plan remains a top choice for residents and nonresidents alike.” Additionally, the report points out, “Results generally look attractive, with the majority of plan options earning 4 or 5 star ratings. Tax benefits create further incentive for Ohioans, as contributors can deduct up to $2,000 per beneficiary from their taxable income. The plethora of options may also appeal to out of state do-it-yourselfers.”

Interested in learning more? Click on this link to read the complete Morningstar article.

To do some more research on CollegeAdvantage and the tax advantages our college savings plans offer, please visit here. If you aren’t sure where to set your saving goals, we’ve got the tools to help. And if you are ready start your CollegeAdvantage Direct 529 plan, go here for the online enrollment.

Posted on October 27, 2016

Ohio Tuition Trust Authority

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