Let's Define Ohio's 529 Plan
For parents, the idea of saving for college isn't new. Neither is the 529 plan. Created to encourage American families to save for higher education, these provide a tax-advantaged way to save. While CollegeAdvantage is the 529 plan offered by Ohio, families in any state can take advantage of it.
Saving For Your Kids Can Benefit You
- Ohio's 529 Plan Applies To Other States Families in any state can benefit from Ohio's 529 College Savings Plan. You're not required to live in Ohio and your student isn't required to attend school in Ohio.
- Tax-Free Savings Your account grows tax-free and qualified withdrawals are free from federal and state income tax.
- Use Your Savings Almost Anywhere Like most 529 plans, the money you save in Ohio's 529 Plan can be used at thousands of colleges and universities across the country – anywhere federal financial aid is accepted.
- Similar To A 401(k) 529 savings plans generally invest your contribution in mutual fund-based investments where your account value is based on investment performance. CollegeAdvantage also offers FDIC-insured banking options.
- Minimum Impact On Federal Or State Financial Aid Funds invested in a 529 are considered to be an asset of the account owner – if that's a parent, only 5.64% of the value of the account is considered to determine the student's Expected Family Contribution.
- No Income Restrictions No matter what your annual income is, you can invest in Ohio's 529 plan.
- Annual State of Ohio Tax Deduction For Ohio taxpayers, contributions to your CollegeAdvantage 529 account may qualify for a deduction from your taxable income, up to $4,000 per child each year.
- Ability To Change Your Beneficiary The account can be transferred to a different beneficiary at any time, as long as that person is an eligible family member of the original beneficiary.
- Flexible Age Limit Most plans allow contributions for a beneficiary of any age. CollegeAdvantage 529 has no age restrictions.