We plugged the average federal tax refund for Ohio - $2,511 - into our College Savings Planner for 17 years. Then we compared the same money saved in an everyday, taxable bank* account. Remember, this is only a projection and your results could be lower or higher based on the actual investment performance, much like the mutual funds in your 401(k) Plan.
*Projections based on saving $2,511 for 17 years with 4 yr in-s7tate tuition, books, and fees totaling $116,000.
529 Plan simulation based on 6% tax-free growth rate. Savings account simulation calculated using calcxml.com at national avg interest rate of .06%.
Ohio's 529 Plan offers a tax-free, FDIC-insured savings account and CDs from Fifth Third Bank. Some people save exclusively in these. Some move money into these as college nears or while their student is in college. And some use them for K-12 private school tuition. The choice is always yours.