Every year trusted financial industry investment research company, Morningstar, reviews the nation’s 529 college savings programs. Once its analysis is complete, Morningstar ranks the 529 plans in a report released each November.
Silver ranking
Ohio 529 CollegeAdvantage is pleased to announce that CollegeAdvantage, Ohio's Direct 529 Plan, maintained its silver rating for the thirteenth year in a row. In addition, BlackRock CollegeAdvantage, Ohio Advisor 529 Plan also maintained its silver ranking for a second year. This makes Ohio the only state program with both their Direct and Advisor 529 Plans ranked in a silver or higher college savings program by Morningstar! The high ranking for both CollegeAdvantage 529 Plans highlights the strength of Ohio’s two plans as well as the industry’s regard for Ohio 529 as one of the best in the nation. Ohio’s 529 Plan is the seventh largest in the nation with $20.23 billion in Assets Under Management (AUM) as of Sept. 30, 2025.
According to the 2025 Morningstar report by Hyunmin Kim, “A 529 college savings plan can be a powerful savings tool for future education expenses, as investments in the plan increase tax-free. While state tax benefits should be the first consideration for most people, there still is a range of 529 plans available, and Morningstar’s manager research analysts remain focused on guiding investors to the best options available.”
According to the full report for Ohio’s Direct 529 Plan, “Supported by thoughtful design and steady oversight, this plan earns a Morningstar Medalist Rating of Silver. Strong menu design and thorough portfolio construction research support an Above Average Process rating…. The Ohio Tuition Trust Authority provides steady governance and oversight with processes that provide continuity through political cycles, supporting an Above Average Parent rating. … Executive Director and CIO Trisha Good—at the agency since 1996—anchors institutional memory with thoughtful succession planning. Clear policies, repeatable reviews, and transparent records help the group endure periodic OTTA Board turnover and support consistent, accountable decision-making.”
For the BlackRock CollegeAdvantage 529 Plan, the full report says, “The plan retains a Morningstar Medalist Rating of Silver, anchored by its research-driven design and strong oversight. A thoughtfully assembled lineup and rigorously engineered glide path earns this plan a High Process rating. … Resources and expertise abound in BlackRock's Multi-Asset Strategies & Solutions group, supporting a High People rating. The Ohio Tuition Trust Authority provides steady governance and oversight with processes that provide continuity through political cycles, supporting an Above Average Parent rating. OTTA partners with consultant Wilshire on monitoring both the advisor- and direct-sold programs. ”
Other honors for Ohio’s Direct 529 Plan
Saving For College recently released its 2025 529 Ratings, which evaluate programs nationwide based on performance, ease of use, savings success, and program delivery. Ohio 529 CollegeAdvantage, Ohio’s 529 Direct Plan, earned a 2025 High Honors award, with 4.5 out of 5 caps from Saving For College. This award recognizes outstanding 529 plans that have achieved a better overall score than their category average. BlackRock CollegeAdvantage 529 Savings Plan, Ohio’s 529 Advisor Plan, earned the 2025 Top of Class award from Saving For College. Of 30 advisor-sold programs, BlackRock CollegeAdvantage is one of only 4 to earn 5 out of 5 caps, the highest honor.
In addition, Business Insider has placed Ohio 529 Plan in their Best 529 Plans for 2025 article. The article stated that, “For a low $25 minimum, the Ohio-based 529 direct-sold savings plan offers a diverse selection of age-based, enrollment-based Vanguard and DFA mutual fund portfolios with tax-free growth. Plus, an individual fund portfolio option. You can also invest in CDs through a Fifth Third Bank savings account ($500 minimum). Single and joint filers can get a tax deduction of up to $4,000 annually.”
Forbes Advisor continues to rank Ohio 529 as one of the six best college savings programs in the nation. According to their explanation: “Ohio’s 529 Plan comes with features in line with the other plans on our list, including low fees, a range of investment options and a tax deduction for Ohio taxpayers. … The plan also comes with a minimum contribution, both to open the account and for each contribution thereafter. But it is small ($25) and likely manageable for many plan participants.”
CNBC also continues to select Ohio 529 as one of the ten best programs nationwide. As they wrote, “With the CollegeAdvantage (Ohio) 529 plan, anyone can sign up. There’s a good mix of investment options (including FDIC-insured accounts), low fees and plans from top companies like Vanguard, Dimensional Fund Advisors and Fifth Third Bank. There’s just a minimum contribution amount of $25 and Ohio residents can get a tax deduction.”
Ohio 529 tax advantages
Why save with Ohio 529? CollegeAdvantage helps families across the nation save money for their children’s future expenses associated with college, vocational, trade, or technical school, certificate and credential programs, as well as apprenticeships, while offering tax-advantaged benefits.
First, contributions and earnings grow tax free in a 529 plan, so all investment growth is yours to use to cover college and career training costs. Second, a 529 withdrawal is tax free when used to pay qualified higher education expenses — those costs that are mandatory to attend the school or program. Third, an Ohio resident who contributes to a CollegeAdvantage 529 account – whether as the account owner or making a gift – can deduct their 529 contributions from their Ohio taxable income. The deduction is $4,000 per year, per beneficiary, with unlimited carry forward. This means that $4,000 per year is not a contribution cap.If an Ohio taxpayer contributes $12,000 in one tax year, they will continue to subtract $4,000 per year, per beneficiary, from their State of Ohio taxable income until all the contributions have been deducted.
Not just for four-year programs
While you may have saved in Ohio 529, you can use your funds at both Ohio schools and schools nationwide. 529 plans can be used across the United States at over 30,000 post-secondary institutions, including four-year universities and colleges, two-year community colleges, trade or vocational schools, apprenticeships approved by the U.S. Labor Department, and certificate and credential programs nationwide that accepts federal financial aid.
To confirm that the schools your child wants to attend accepts federal aid, search to see if the institutions have a Federal School Code on the Free Application for Federal Student Aid (FAFSA). If the schools do, then you can use your Ohio 529 funds there.
Since 1989, Ohio 529 has been helping families across the nation save for their children’s education after high school. Ohio 529 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, and certificate or credential program nationwide that accepts federal financial aid. Learn, plan, and start for as little as $25 today at CollegeAdvantage.
