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The new fiscal year always brings about new changes for those in state government and Ohio’s 529 Plan is no different. Ohio’s 529 Plan, CollegeAdvantage, has reached a major milestone with Assets Under Management (AUM). On June 30, 2019, Ohio’s 529 Plan reported AUM of $12.4 billion. This is a seven percent increase over AUM during this time last year and a 15 percent increase of AUM in 2017. The growth in the Ohio 529 Plan AUM is program–wide, meaning there have been increases in AUM in both the CollegeAdvantage Direct 529 and the Blackrock CollegeAdvantage Advisor Plan. The program’s low-cost, flexibility, investment line-up, and growth in assets makes Ohio’s 529 Plan the sixth largest 529 college savings plan in the country. Earlier this year, Savingforcollege.com, the country’s college savings industry resource, ranked CollegeAdvantage number one in the nation for best performance in both the five-and 10-year categories and fifth for the best performance in the one-year and three-year categories.
Individuals who save through Ohio’s 529 Plan have a choice of two different plans: the CollegeAdvantage Direct 529 Plan for the do-it yourself investor or the BlackRock CollegeAdvantage Advisor 529 Plan for those who prefer the help of a financial advisor. “Now more than ever is the time to save and invest for educational or training costs after high school,” according to Tim Gorrell, Executive Director of Ohio’s 529 Plan, “and Ohio’s 529 Savings Program can be your trusted partner in realizing these savings goals.”
Funds in CollegeAdvantage may be used for all types of qualified higher education expenses — whether for a typical four-year college or university, community college, technical or trade school, or a certificate program. If the post-secondary school your child elects to attend accepts federal financial aid, Ohio’s 529 Plan can be used there.
Ohio’s 529 Plan helps families in Ohio and across the country save money for their children’s future post-secondary education or training with significant tax-advantaged benefits. All contributions and earnings grow tax free, and withdrawals from CollegeAdvantage are also tax free when used to pay qualified higher education expenses. These qualified costs include tuition, fees, room and board, books, and computers.
Any Ohio resident who contributes to an Ohio 529 Plan account can deduct 529 contributions from his or her Ohio taxable income. The deduction has been increased to $4,000 per year, per beneficiary with unlimited carry forward. The $4,000 per year is the maximum deduction amount and not the maximum contribution amount.
Ohio’s 529 Plan, CollegeAdvantage, is offered and administered by the Ohio Tuition Trust Authority, a state agency under the Office of the Chancellor of the Ohio Department of Higher Education. Ohio is the sixth-largest state sponsor of 529 plans in the country. CollegeAdvantage is offered as the CollegeAdvantage Direct 529 Savings Plan and the Blackrock CollegeAdvantage 529 Plan, which is offered and marketed through BlackRock and sold through professional financial advisors. Ohio’s 529 Plan offers families a tax-advantaged way to save for education expenses after high school. As of June 30, 2019, Ohio’s 529 Plan has more than $12.4 billion in assets under management and almost 642,000 total accounts. To learn more, visit CollegeAdvantage.com.
Posted on August 6, 2019