Columbus, OH – February – Effective Jan. 1, 2018, the $2,000 state tax deduction for contributions into Ohio’s 529 college savings plan has doubled to $4,000! This means Ohioans who contribute to CollegeAdvantage in 2018 can now deduct up to $4,000 from their state of Ohio taxable income. The $4,000 deduction is per contributor (or married couple), per beneficiary, per year, with unlimited carryforward. Ohioans who contribute more than $4,000 per year can continue to claim the state deduction until all their contributions have been fully deducted. It is important to know that the $4,000 is not a cap on contributions and the new deduction is for all contributions regardless of when the contributions were made.
Another achievement for CollegeAdvantage is the growth in assets. In less than a year, CollegeAdvantage’s assets under management have grown from $10.35 billion to more than $11.3 billion. This is a growth of over 8.4% in assets under management. The program’s low-cost, flexibility, investment line-up and growth in assets makes CollegeAdvantage the sixth largest 529 college savings plan in the country. Individuals who save through CollegeAdvantage have a choice of two different plans: CollegeAdvantage Direct 529 Plan for the do-it yourself investor or BlackRock CollegeAdvantage Advisor 529 Plan for those who prefer the help of a financial advisor. “Now more than ever is the time to save and invest for educational or training costs after high school, “ according to Tim Gorrell, Executive Director of Ohio’s 529 Plan, “ and Ohio’s 529 Savings Program can be your trusted partner in realizing these savings goals.”
For as little as $25 families can open a CollegeAdvantage account. Families can easily contribute through payroll deduction, recurring contributions from a bank account or occasional online contributions. Funds saved in CollegeAdvantage (and other 529 plans) are tax-free when used to pay qualified higher education expenses.
CollegeAdvantage is Ohio’s 529 college savings program, offered and administered by the Ohio Tuition Trust Authority, a state agency under the Office of the Chancellor of the Ohio Department of Higher Education. To learn more, visit CollegeAdvantage.com.