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Ohio’s 529 Plan Celebrates New Milestone

2018 is starting off to be a banner year for Ohio’s 529 Plan, CollegeAdvantage.

Effective Jan. 1, 2018, the state income tax deduction for contributions made to Ohio’s 529 increased to $4,000 for Ohioans. Passed by the Ohio General Assembly, this expanded tax benefit further encourages current and future CollegeAdvantage 529 Plan account owners to save for their children’s future college costs. Other tax advantages for saving for college in Ohio’s 529 Plan include tax-free earnings, so every dollar is yours to use, and tax-free withdrawals when used for qualified higher education.

New Monetary Milestone

Additionally, Ohio’s 529 Plan already reached a milestone this year — growing to over $11.3 billion in assets under management. This is an 8.4% increase in less than a year. This makes Ohio’s 529 Plan the nation’s sixth largest college savings program. Ohio’s Direct 529 Plan grew to $5.76 billion from $4.84 billion on Dec. 31, 2016. This is an increase of 18.5% year over year. Assets under management for BlackRock CollegeAdvantage, Ohio’s Advisor 529 Plan, rose to $5.33 billion from $4.82 billion the previous year. This is a growth of 10.4% year over year.

Clearly forward-thinking parents from Ohio and across the U.S. have chosen to entrust their children’s college savings with Ohio’s 529 Plan. Why? Because CollegeAdvantage is recognized as one of the nation’s best 529 college savings programs.

Ohio’s 529 Plan ​Highly ​Regarded

Morningstar, Inc., the leading provider of independent investment research, selected Ohio’s CollegeAdvantage Direct 529 Savings Plan as one of the top 529 plans in the country by awarding it a “Silver” rating for the seventh consecutive year. Along with CollegeAdvantage Direct 529 Savings Plan’s silver rating, the CollegeAdvantage Advisor 529 Plan received a “Bronze” rating. This makes Ohio one of only eight states that have both their Direct and Advisor 529 plans placed in the best-in-class by Morningstar. 

A recent report from Kiplinger recognizes Ohio’s 529 Plan as having best age-based portfolio for conservative investors. In addition, Kiplinger drew special attention to two of individual investment options, Vanguard Wellington and Vanguard High-Yield Corporate.

Savingforcollege.com, a trusted college-savings industry resource, analyzes the investment performance of the nation’s 529 plans on a quarterly basis and ranks them. Ohio’s 529 Plan is listed as first in the nation in the 3-year and 5-year performance categories. Savingforcollege.com also recognizes Ohio’s 529 Plan as one of the best plans in the nation, as well as a top option for conservative investors.

Ohio’s 529 Plan is proud to receive all these high marks as we strive to offer the best 529 plan possible for all forward-thinking parents who want to save for their children’s future college costs. We’re proud of all our 529 investment options — ranging from ready-made, age-based and ready-made risk-based portfolios; individual investment options, and FDIC-insured banking options — from leading investment managers VanguardDimensional Fund Advisors, and Fifth Third Bank.

Next Steps

Are you ready to do more research on Ohio’s 529 Plan, CollegeAdvantage, and its tax advantages? Not sure about your savings goals or risk tolerance when it comes to investing? Ohio’s 529 Plan can help with our tools and calculators.  If you are ready start your CollegeAdvantage Direct 529 plan, you can enroll online today. Remember, 529 plans are a great alternative to student loan debt. CollegeAdvantage is your plan, you way. 

Posted on February 07, 2018

Ohio Tuition Trust Authority

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