On Dec. 11, Ohio’s 529 Plan, CollegeAdvantage, will roll out a new age bracket to our Ohio Vanguard Target Enrollment Portfolio (TEP) — the 2042/2043 Fund. This new fund will be for any beneficiary who will draw from their higher education savings starting in 2042 or 2043.
Additionally, the 2021/2022 Fund was closed permanently for investments at 4 p.m. on Thursday, Dec. 7, 2023. This fund will be automatically transitioned into the Commencement Fund. For families in the 2021/2022 TEP fund, you will now be contributing to the Commencement Fund for your student.
The Vanguard Ohio Target Enrollment Portfolio (TEP) is invested based on the date your beneficiary will begin using the funds for their higher education, whether at a four-year college or university, a two-year community or technical college, trade or vocational school, qualifying apprenticeship, or certificate program.
In a TEP, your savings are invested based on the year that the beneficiary of your Ohio 529 account will need to start withdrawing the 529 funds for their education after high school, which is typically at age 18. For instance, if your child entered kindergarten in 2022 and is planning to enroll in college 13 years later, you would want to consider the 2036/2037 fund. While you are investing in a TEP, the portfolio will automatically adjust each quarter to regularly reduce the amount of risk in it in small increments. TEPs follow a smooth glide path asset allocation strategy, which shifts from investments that have more risk, like stocks, toward more conservative investments, like bonds and cash, as your beneficiary approaches the time for post-high school education.
Another advantage of a TEP is that you can choose a fund based on your risk tolerance. First, you should determine the year when your child will need the 529 higher education savings. With the earlier example, your current first-grader would need the 529 account in 12 years, so you would look at the 2034/2035 TEP fund. You can then adjust the risk profile of your investments by moving up to a TEP fund with a later date for more equity exposure, or down to a TEP fund with an earlier college enrollment date for more fixed income exposure.
Ohio’s 529 Plan is committed to providing quick, friendly, and professional customer service through our Columbus, Ohio-based customer service representatives. If you have any questions about this new qualified withdrawal, or if you need information or assistance with your account, please call CollegeAdvantage at 1-800-AFFORD-IT (233-6734). Our customer service representatives are available to assist you from 8:30 a.m. - 6 p.m. EST Monday through Friday. You may also send your non-account specific questions to CustomerService@CollegeAdvantage.com.
Visit Ohio’s 529 Plan online to start saving today for your child’s future higher education. An investment in a 529 plan is an investment in your 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 colleges and universities, two-year community colleges or technical schools, trade or vocational schools, apprenticeships, or certificate programs. Learn, plan, and start an Ohio 529 Plan today at CollegeAdvantage.com.
