Let's Define The 529

For parents, the idea of saving for college isn't new. Neither is the 529. Created to encourage American families to save for higher education, 529 plans provide a tax-advantaged way to save.

CollegeAdvantage is the 529 program offered by Ohio, but families in any state can take advantage of it.

Saving for your kids has benefits for you

• Ohio's plan applies to other states Families in any state can benefit from a CollegeAdvantage 529 Savings Plan, you're not restricted to live in Ohio, and your student isn't required to attend school in Ohio.
• Tax-free savings Your 529 account grows tax-free, and qualified withdrawals are free from federal and state income tax.

Thousands of colleges across the country, including 2-year, 4-year, graduate, and technical schools

• Use savings almost anywhere Like most 529 plans, the money in your CollegeAdvantage 529 account 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 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 a 529 plan.
• State of Ohio tax deduction For Ohio taxpayers, contributions to CollegeAdvantage 529 may qualify for a deduction from your taxable income.
• Ability to change beneficiary At any time the account can be transferred to a different beneficiary, if 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.