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One of the most frequently asked questions CollegeAdvantage hears is, “If I use Ohio’s 529 Savings Program, does my child have to attend an Ohio college?”
Here’s the truth: You can use a CollegeAdvantage 529 Plan at any school nationwide (and even some overseas) that accepts federal financial aid. If the post-secondary school has a Federal School Code on the Free Application for Federal Student Aid (FAFSA), then the 529 plan can be used there to cover qualified higher education expenses. You are not locked in to using the money you saved in an Ohio 529 account only at an accredited post-secondary program in Ohio. A CollegeAdvantage 529 plan can be used for a two-year, four-year, graduate or professional degree, or any other post-secondary credential across the nation. Basically, you can use the 529 account almost anywhere you’re comfortable sending both your student and your money.
For whatever reason, the “for-use-only-in-your-home state” myth still lingers for these college savings plans. Just remember, you can use your CollegeAdvantage 529 Plan at any federally accredited educational institution nationwide and abroad.
While 75% of all Direct Plan accounts are owned by Ohio residents, families nationwide choose CollegeAdvantage for the plan’s investment options, investment performance, and low fees. Morningstar has ranked Ohio’s Direct 529 Savings Program as one of the top 13 college saving 529 plans in the U.S. Also, CollegeAdvantage continues to be one of only four 529 plans nationwide to receive the 5-Cap Rating for both in-state and out-of-state residents from Savingforcollege.com.
For Ohio taxpayers, there is an additional tax benefit for owning a CollegeAdvantage 529: A state of Ohio $2,000 income tax deduction for contributions to CollegeAdvantage accounts. Tax-free earnings, tax-free withdrawals and the state of Ohio tax deduction are great reasons for Ohioans to open a CollegeAdvantage 529 account.
The truth is that CollegeAdvantage can be used at any 529-eligible college or university in the nation! As always, CollegeAdvantage is your plan, your way.
Posted on February 23, 2017