It’s the day after Thanksgiving and there are many gifts for which to be grateful. If you finished college with little or no student debt and would like to provide a similar opportunity to your children, Ohio’s 529 Plan — CollegeAdvantage — is here to help you save for your child’s future college costs.
Established by Section 529 of the Internal Revenue Code, 529 college savings plans include specific tax advantages, including:
- Tax-free earnings. Earnings on a regular savings account will be taxed yearly but 529 investments grow tax-free at the federal and state level, ensuring that every dollar of growth is yours to use. Check out our online tax benefit tool at CollegeAdvantage.com to see the savings.
- Tax-free withdrawals. Funds withdrawn from 529 plans are tax free when used for qualified higher education expenses.
- State income tax deduction for contributions to Ohio’s 529 Plan. As a resident of Ohio, you can deduct 529 contributions up to $2,000 per beneficiary, per year, from your state income tax. However, this is not a cap. With unlimited carry forward, you can continue to deduct 529 plan contributions from your taxable state income until all of it is written off.
Ready-Made, Age-Based Options
CollegeAdvantage has partnered with leading investment managers Vanguard, Dimensional Fund Advisors, and Fifth Third Bank to provide Direct 529 plan saving vehicles. These include ready-made, age-based or ready-made, risk-based portfolios; stocks and bond options; to FDIC-insured banking options. With the ready-made, age-based options, the risk in the asset allocation mix will automatically be reduced as your child grows closer to needing the 529 funds to cover college costs.
Tools and Calculators
Use our online tools and calculators to build the 529 plan that suits your family’s needs. The college savings planner can estimate a monthly contribution amount to reach your savings target. You can fill out an online questionnaire to assess your risk tolerance before shaping your asset allocation strategy. The cost of waiting tool can show how a difference an early start in college savings can make.
Start your tax-advantaged college savings plan today at CollegeAdvantage.com and watch your savings add up. 529 plans are a great alternative to student loan debt. CollegeAdvantage helps forward-thinking parents make college doable. CollegeAdvantage is your plan, your way.