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Not only is September back-to-school season, it’s also College Saving Month. The two go hand-in-hand, as a good education is highly valued asset. Whether you’re watching your little one board the school bus for their first year of elementary school or you’re watching your future college graduate board the school bus for their last year of high school, it’s never too late or too early to save for their future post-high school training or educational costs.
Ohio’s 529 Plan, CollegeAdvantage, can help forward-thinking parents make college doable. We have information, tools, and calculators to share with parents as they develop their post-secondary school savings strategy.
529 Plan Tax Benefits
With Ohio’s 529 Plan, you can maximize your savings with 529 tax benefits, which include:
- tax-free earnings so all investment growth is yours to use;
- tax-free withdrawals for qualified higher education expenses, those costs — tuition, room and board, computers, mandatory fees — which are required for enrollment at a post-secondary educational institute;
- state income tax deduction for Ohioans for CollegeAdvantage 529 account. The current eligible amount for deduction is up to $4,000 per year, per 529 account beneficiary. However, with unlimited carry forward you can continue to deduct a large 529 plan contribution from your state income tax until all of it has been deducted. For instance, if you contribute $12,000 to your beneficiary’s account, you can deduct $4,000 from your state income tax for the next three years.
Tools To See Your 529 Savings Add Up
CollegeAdvantage offers tools and calculators so you can build the 529 investment plan that’s right for your family. Start by answering the risk tolerance questionnaire to determine with which asset allocation mix you’d be most comfortable – conservative, moderate, or aggressive. Use the college savings planner to estimate the cost of your child’s college education, then set goals for how much you want to save toward the total expense. If you’ve started to save for college in a regular savings account, work with the tax benefit tool to see how tax-free growth in a 529 plan really adds up. And if you haven’t started to save yet, the cost of waiting tool can illustrate the advantages of saving early with the power of compound interest growing in the 529 account.
Ohio’s 529 Plan Can Be Used Nationwide
Saving for college in Ohio’s 529 Plan does not mean your child can only attend Ohio schools. 529 plans can be used nationwide at any accredited two-year, four-year, graduate, vocational, trade, or any other post-secondary school that accepts federal financial aid.
Back-To-School College Savings Award
Ohio’s 529 Plan, CollegeAdvantage, is celebrating September as back-to-school time and College Savings Month by giving away a $529 college savings award. Anyone can enter; you can use the award to start a 529 college savings plan or add to your already established account. Enter here today. The giveaway runs Monday, Sept. 10, until 11:59 p.m. ET on Sunday, Sept. 30. Read the rules here. Don’t miss out on this chance to start or add to your 529 account.
529 plans are a great alternative to student loan debt. Use our online tools and calculators to build the 529 plan that suits your family’s needs. Start your tax-advantages college savings plan today at CollegeAdvantage.com. Ohio’s 529 Plan, CollegeAdvantage, is your plan, your way.
Posted on September 10, 2018