Ohio 529 Year-End Contribution Deadline Set For 4 p.m. ET Dec. 31
With the new year right around the corner, Ohio’s 529 Plan is encouraging Ohioans to resolve to make saving for higher education a priority in the new year by getting a head start in 2019 before the year comes to a close. When Ohioans enroll and/or contribute to an Ohio 529 savings plan, they can claim a deduction up to $4,000 per beneficiary on their state of Ohio taxable income. All contributions for 2019 must be received in good order by 4 p.m. EST on Dec. 31, 2019.
Ohio’s 529 Plan provides tax advantages to help families reach their college savings goals. Any Ohio taxpayer — including parents, grandparents, family members, and friends — can help open the door to higher education for a loved one by contributing to a plan. Any Ohio resident who contributes directly to a child’s Ohio 529 account can claim the State of Ohio tax deduction, even if they are not the account owner. Account owners pay no taxes on account earnings, and withdrawals used for qualified higher education expenses are exempt from both federal and state taxes.
“The end of the year is the perfect moment in time to revisit and review your savings goals for higher education, and ensure that you’re maximizing all the 529 tax benefits to grow your account – from tax-free earnings, to tax free-withdrawals, to state income tax deductions,” said Tim Gorrell, executive director of the Ohio Tuition Trust Authority.
Ohio’s CollegeAdvantage Direct 529 Savings Plan is recognized nationally as one of the nation’s best 529 plans.
Savingforcollege.com is a trusted, independent college-savings industry resource. In its most recent quarterly analysis of 529 plan investment performances, Ohio’s 529 Plan is listed in one of the top three spots in each of the long-term investment performance charts. As of Sept. 30, 2019, CollegeAdvantage Direct 529 Plan ranks first in the nation for the best investment performance in two different categories: five-year and ten-year. Ohio’s Direct 529 Plan was ranked third nationally for the one-year performance, and second nationwide for the best performance in the three-year category. Ohio’s Direct 529 is the only program to rank in the top three for each category.
Savingforcollege.com consistently recognizes Ohio’s Direct 529 Plan as one of the best plans in the nation for both Ohio residents and non-Ohio residents by giving the program a 5-Cap Rating. This designation is dependent on criteria that shows the college savings plan “offers outstanding flexibility, attractive investment, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.” Ohio’s Direct 529 Saving Plan has received this recognition multiple times for the plan’s attractiveness for Ohioans and across the nation. Ohio’s Direct 529 Plan is currently the only plan nationwide with this distinction.
Morningstar also regards Ohio’s Direct 529 Plan very highly. The program received a Silver rating for the ninth consecutive year. BlackRock CollegeAdvantage, Ohio’s Advisor 529 Plan, also retained its bronze ranking. This makes Ohio one of only four state programs that have both their Direct and Advisor 529 Plans ranked as medal class investment options by Morningstar. In addition, the Ohio Direct 529 Plan is one of only three plans in the country to attain a positive ranking in all five of Morningstar’s pillars. The high ranking for both CollegeAdvantage 529 Plans highlights the strength of these two college savings plans as well as the industry’s regard for Ohio’s 529 Plan as one of the best in the nation.
Families interested in starting to save for higher education expenses before the end of the year should visit CollegeAdvantage.com to get started with as little as $25. Funds saved in Ohio’s 529 Plan can be used at thousands of schools nationwide, including two-year, four-year, or graduate schools as well as trade, vocational or certificate programs, to pay tuition, fees, books, room and board, and computers.
Posted on December 12, 2019