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Congratulations to the Class of 2017! If you are invited to graduation parties, you may be wondering what you should give the recent high school grad. A gift card to some restaurant or online store that you hope they like? Something practical like sheets, towels, or a shower caddy to take to college? Something expensive like a laptop?
Would you rather give a gift that has meaning and significance? How about giving the gift of college by adding to the graduate’s 529 plan? It’s never too late to add to their account to cover upcoming college expenses. And it’s simple to do.
How To Give A Gift To A 529 Plan
If the parents have established a CollegeAdvantage 529 account for the graduate, you can write a check made payable to the Ohio Tuition Trust Authority. Simply present the check as your gift to your recipient who can then mail the contribution, hopefully along with other gift contribution checks, to CollegeAdvantage. You can also order a graduation greeting card to announce your contribution. And there is no fee to make a gift donation so the graduate receives the full dollar amount in their account.
Another method of giving the gift of college is to ask the parents if they have an Ugift code for the child’s CollegeAdvantage Direct Plan account. Ugift allows account owners (usually the parents) to set up a code which allows gift givers to donate online directly to an already established CollegeAdvantage Direct 529 plan account without needing the actual account number. Once you have the unique Ugift code for the gift recipient, you can visit Ugift529.com to make your electronic contribution securely from your bank account. It's that easy. It’s also quick and easy for parents to request an Ugift code for their existing accounts. They just need to log in to their account and click on Ugift. Again, you can order a graduation greeting card to announce your online contribution.
Tax Benefits For Gift Giver
And, if you are an Ohio tax payer who contributed to a CollegeAdvantage account, even if you are not the account owner, you can deduct up to $2,000 in contributions per beneficiary, per year from your Ohio taxable income. (For tax purposes, you must keep your own proof and record of contributions.) In this way, your gift of college savings can help the graduate and it can help you, too!
Posted on May 17, 2017