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With the end of year approaching, Ohioans have until 4 p.m. ET on Saturday, Dec. 29, 2017, to give the gift of college savings by making a final contribution to Ohio’s 529 Plan for this calendar year. Ohioans who enroll and contribute to each CollegeAdvantage account between now and 4 p.m. ET Dec. 29, 2017, can still take advantage of the $2,000 annual deduction to their State of Ohio taxable income.
All taxpayers in Ohio are eligible – this includes parents, grandparents, family members and friends – to contribute directly to a CollegeAdvantage 529 savings plan and give the gift of college savings. Each contributor, or married couple, may claim a deduction of up to $2,000 for each beneficiary, per beneficiary, on their Ohio taxable income. While $2,000 is the maximum deduction per year, it is not the maximum contribution. The State of Ohio has an unlimited carry forward which means if you contribute more than $2,000 this calendar year, you may continue your deductions into following years. Contributions for each beneficiary must be received, in good order, no later than 4 p.m. ET on Dec. 29, 2017, to receive this maximum deduction.
Families interested in giving the gift of college savings this holiday season may open an account with as little as $25 online at CollegeAdvantage.com to start saving for future college expenses. "Giving the gift of college savings is a thoughtful way to offset the growing costs of higher education and one that will be appreciated for years to come," said Tim Gorrell, executive director of the Ohio Tuition Trust Authority.
Any funds saved through CollegeAdvantage can be used at any accredited college in the U.S. to pay tuition, fees, books, room and board and for any electronic equipment required. CollegeAdvantage provides tax advantages to help families save more for college. CollegeAdvantage account owners pay no taxes on account earnings and withdrawals used for qualified higher education expenses are exempt from both federal and state taxes.
CollegeAdvantage is Ohio's 529 college savings program, offered and administered by the Ohio Tuition Trust Authority, an office within the Ohio Department of Higher Education. Ohio is the sixth largest state-sponsored 529 plan in the country. CollegeAdvantage is offered as the CollegeAdvantage Direct 529 Savings Plan and the CollegeAdvantage Advisor 529 Saving Plan, which is offered and marketed through BlackRock and sold through professional financial advisors. The CollegeAdvantage program, which offers families a tax-advantaged way to save for college, has nearly $10.9 billion in assets under management and over 633,000 total accounts as of Sept. 30, 2017. To learn more, visit CollegeAdvantage.com.
Posted on December 22, 2017