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April 30 is celebrated as National Apprenticeship Day, which highlights apprenticeships as a great way to develop a highly skilled workforce that strengthens the economy. There are many apprenticeship opportunities that can lead to well-paying jobs in an in-demand field.

And if you have been saving with Ohio 529 CollegeAdvantage, your savings can be used to pay for certain apprenticeship costs.

If you child is interested in an apprenticeship, the program must be registered with the U.S. Secretary of Labor’s  National Apprenticeships Act in order to use your 529 savings there.

What is an apprenticeship?

An apprenticeship is training in a skilled profession, which usually starts after high school graduation, though there are some pre-apprenticeship options in the K-12 system. The employer or trade union will pay a student during the apprenticeship, which usually lasts between three to five years as they receive hands-on training. At the end of their apprenticeship, the student will receive a nationally recognized industry credential, which accompanies them wherever their career path might lead.

As a student is receiving real-world training, there may be some costs involved, which are usually for the tools of the trade. If you have been saving in a 529 plan, you can take a withdrawal from your account to pay for those tools and more, like fees, textbooks, and supplies. Again, the apprenticeship must be registered with the U.S. Labor Department to keep your 529 withdrawal tax-free.

Another advantage is that students could already have a full-time job lined up after they complete their apprenticeship. Most organizations want to hold onto the skilled workers they’ve trained, especially for in-demand fields.

Ohio 529 can pay apprenticeship costs

While there are many career paths for your kids, one thing is certain: Ohio's tax-free 529 Plan is the simple way to help them prepare for their future. Your savings grow tax-free and stay tax-free when used for qualified higher education expenses. And Ohio 529 can be used at thousands of schools, nationwide.

With the passage of the SECURE (Setting Every Community Up for Retirement Enhancement) Act in 2019, apprenticeships were added as another post-secondary education option for which you can use your 529 account.

So tax-free Ohio 529 withdrawals can pay for qualified costs for apprenticeships such as fees, textbooks, supplies, and equipment like required trade tools. The apprenticeship program must be registered with the Secretary of Labor’s National Apprenticeships Act to use a 529 plan withdrawal. Interested parties can check the U.S. Labor Department’s  search tool to confirm that a program is registered, and therefore, eligible for a 529 withdrawal.

State of Ohio apprenticeship opportunities

The State of Ohio wants to help interested students find the perfect apprenticeship opportunity for them. Apprentice.ohio.gov shows the multitude of career occupations apprenticeships available throughout Ohio.

If your child would also like to earn an associate’s degree, there are apprenticeship programs in Ohio where participants earn credits towards an associate of technical studies degree. The Ohio Department of Higher Education’s Apprenticeship Pathways Initiative has linked apprenticeship programs with local two-year community colleges so participants can also earn a technical associate’s degree. Some of the trades cooperating in this program include electrical, sheet metal, carpentry as well as plumbers and pipefitters. Recent apprenticeship expansion grants have also dramatically increased the number of available apprenticeship programs on community college campuses around Ohio. These new programs are also built into a technical associate’s degree.

Since 1989, Ohio 529 CollegeAdvantage has been helping families across the nation save for their children’s college and career training. Ohio 529 Plan covers qualified costs at any four-year college or university, two-year community college, trade or vocational school, apprenticeship approved by the U.S. Labor Department, or certificate program nationwide that accepts federal financial aid. Learn, plan, and start for as little as $25 today at CollegeAdvantage.

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529 Short Course: New Parents

5 things every new parent needs to know about saving for education

  1. Why Ohio 529?
    529s are specifically created for higher education savings. Unlike a traditional banking account, a 529 account benefits from tax-free earnings and tax-free withdrawals. For Ohio residents, there is also a state income tax deduction for those contributions.
  2. It’s simple to start.
    You can open your 529 account online in minutes with as little as $25. With ready-made portfolio options, you don’t have to be a financial expert to feel confident in your savings plan choices.
  3. Set it and forget it with automatic deposits.
    The sooner you start saving, the longer your account benefits from the Ohio 529 tax advantages as well as compound interest. Many new parents take their 529 contributions off their to-do list by setting up small automatic deposits from either their banking accounts or paycheck. Also, with our ReadySave 529 app, it’s also easy to track and adjust your account right on your mobile device.
  4. Save for college, career training, and more.
    Ohio 529 can be used at over 30,000 schools of all kinds, nationwide, including universities; community colleges; trade, technical, and vocational schools; certificate programs; and apprenticeships. Your Ohio 529 account can also pay for K-12 tuition at a public, private, or religious school. And, if it’s not needed for educational expenses, you can now roll over your 529 to a Roth IRA.
  5. Others can help.
    It’s easy for family and friends to contribute to your child’s account and receive tax benefits for themselves. You can share your account’s unique Ugift number with others to contribute online without creating their own 529 accounts. Those who live in Ohio will also receive a state income tax deduction for their contributions. Also, you can sign up to have reminder emails sent to you and loved ones for the big milestones in your child’s life.

Hoping to find gold at the end of the rainbow? If you are saving with Ohio 529 CollegeAdvantage, you have the benefit of Ugift with your account, which is savings gold.

Ugift makes it easy for others to give to your Ohio 529 account. With Ugift, you generate a unique code which allows loved ones to contribute to your Ohio 529 savings plan without needing the actual account number. Once they have the Ugift code, your friends and family can visit Ugift529.com to make their online gifts directly to your 529.

When friends and family ask for gift ideas, share that you are saving for your child’s future education with Ohio 529. Then invite them to join in with gift contributions to your Ohio 529 account with Ugift. After all, a gift for your child’s education will truly last a lifetime.

The quickest and easiest way to pass along your child’s Ugift code is with the ReadySave 529 app, which you can access as an Ohio 529 CollegeAdvantage account owner. At the bottom of every page is an Ugift icon. Click on the gift symbol to view your Ugift code which you can send immediately as an invitation via texts, emails, and Facebook/Instagram chats from your phone.

Or log into your account online to view your child’s Ugift code to send to family and friends who would like to give the gift of education.

The Ugift code doesn’t expire. Which means whenever there is an occasion to celebrate­ like baby showers, holidays, birthdays, graduations, and special achievements, your family and friends can give to your Ohio 529 account. And they can choose to contribute as much as they want whenever they want. It can be a one-time gift or recurring gift; all they need is that Ugift code. Your loved ones’ contributions - whether big or small – will add up over the years. Added to the power of compound interest, these gifts will power your 529 savings to cover even more college and career training costs.

An added bonus for gift givers who live in Ohio: They are also eligible to receive a state income tax deduction for their Ohio 529 gift contributions, up to $4,000 per year, per beneficiary.

To learn more about all of the gifting options with Ohio 529 and order cards for special occasions, visit  529 Gift Central.

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