Ohio’s 529 Direct Plan Fees Have Been Reduced
Ohio’s 529 Plan, CollegeAdvantage, strives to keep our fees as low as possible so you can save even more. This is why we are pleased to announce that the fee charged by Vanguard, one of Ohio Direct 529 Plan’s partners, has been reduced by half a basis point from 1.5 bps to 1.0 bps (0.015% to 0.01%). Also, Ascensus College Savings, the program record-keeper for Ohio Direct 529 Plan, has reduced their fee by half a basis point from 10 bps to 9.5 bps (0.10% to 0.095%.) This reflects a full basis point reduction in the overall fees for Ohio’s 529 Plan. This reduction went into effect on October 1, 2021.
The fee reduction will have an impact on all of our investment options except for our banking products offered through Fifth Third Bank. The banking products are not charged any record-keeping fees. This fee reduction was made possible due to growth in Assets Under Management (AUM) for Ohio Direct 529 Plan reaching a level that triggered contract-specified price reductions. As of December 31, 2022, Ohio’s 529 Program oversees over $14.28 billion in AUM within over 680,000 college saving accounts.
As Ohio’s Direct 529 Plan assets grow, CollegeAdvantage looks for efficiencies, including fee reductions like these. Making contributions to your 529 account will help you meet your savings goals. At the same time, your contributions also help to grow AUM, which allows for efficiencies and triggers AUM-based fee reductions. And don’t forget, family and friends can also give the gift of college by contributing to your CollegeAdvantage Direct 529 account as well.
New accounts also grow Ohio’s 529 Savings Program, and as it grows, everyone benefits! Check out the tax advantages of saving for the future higher education dreams of your children or grandchildren with CollegeAdvantage.
An investment in an Ohio’s 529 Plan is an investment in a child where every dollar saved today is a dollar that doesn’t have to be borrowed later. A 529 account can be used for whatever comes after high school, including four-year universities, community colleges, trade or vocational schools, certificate programs, and apprenticeships. For as little as $25, you can open an Ohio 529 account.
Learn, plan and start today at CollegeAdvantage.com.
Posted on October 27, 2021