Contribute To Ohio 529 By Dec. 31 To Maximize Tax Benefits
Saving in Ohio’s 529 Plan comes with many tax advantages. First, all earnings are tax-free, so that any interest earned in your college savings account is all yours to use for future college costs. Second, withdrawals for qualified higher education expenses – those mandatory costs to attend an institution, like tuition – are also tax-free. Lastly, when Ohio residents contribute to an Ohio 529 savings plan, they can claim a deduction up to $4,000 per beneficiary, per year, on their state of Ohio taxable income for matching contributions. All contributions for 2020 must be received by Ohio’s 529 Plan, CollegeAdvantage, in good order before 4 p.m. ET Thursday, Dec. 31, 2020.
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. If you already have a CollegeAdvantage Direct Plan account, you can provide other family members an Ugift code for your child’s account. This code permits others to make online gift contributions directly to your Direct 529 Plan without your account number. Once you provide the Ugift code, friends and family can visit Ugift529.com to make their electronic contribution securely from their bank account. It’s that easy.
Please note, if a loved one who is an Ohio resident wants to give the gift of higher education to your Ohio 529 account through Ugift, their contribution must be received in good order before 4 p.m. ET Monday, Dec. 21, 2020, in order to be included for their 2020 State Of Ohio income tax deduction.
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, and apprenticeships to pay tuition, fees, books, room and board, computers, and much more.
Posted on December 21, 2020