Member Insights by CollegeAdvantage
Columbus, OH – June 24, 2019 – Ohio’s 529 Plan continues to receive high ranks for its long-term investment performance. The CollegeAdvantage Direct 529 Savings Plan ranks first in the nation for the best performance in both the five-year and 10-year categories. The program ranks fifth for the best performance in the one-year and three-year categories.
“We endeavor to be the best-in-class higher education savings and investment option,” said Tim Gorrell, executive director of CollegeAdvantage. “These rankings illustrate the trust and confidence investors can have in our plan. We are ever mindful of our duty to provide and facilitate the most favorable conditions for our account holders so they can reach their higher education goals and aspirations.”
CollegeAdvantage’s national rankings come as a result of a quarterly study conducted by Savingforcollege.com, a trusted college-savings industry resource that provides unbiased research on 529 plans, financial aid, and scholarships, and offers tools to help families estimate college expenses. Savingforcollege.com analyzes the performance of the nation’s 529 plans and ranks them using a 5-Cap Ranking system.
Savingforcollege.com uses these five criteria:
- Performance, which is taken directly from Savingforcollege.com’s quarterly performance rankings;
- Cost of running a college-savings plan, which includes average asset-based expense ratios, and administrator and managerial fees;
- Features such as a spectrum of age-based and risk-based portfolios as well as FDIC-insured options, participation in such programs as Upromise and Ugift, and contribution restrictions;
- Reliability signals such as plan disclosure statements, the ease of making account changes, and the quality and experience of outside program managers; and
- Added upgrades for residents of the plan’s sponsoring state.
A 5-Cap rating is dependent on criteria that shows the college savings plan offers outstanding flexibility, attractive investment, and additional economic benefits (such as a generous state tax incentive) that, for some, will provide a substantial boost to their savings.
CollegeAdvantage is one of only two 529 college savings plans in the country to earn a 5-Cap rating for both residents and non-residents, as of April 18, 2019.
CollegeAdvantage helps families in Ohio and across the country save money for their children’s future postsecondary education or training with tax-advantaged benefits. All contributions and earnings grow tax free, and withdrawals from CollegeAdvantage when used to pay qualified higher education expenses are also tax free. A qualified higher education expense includes tuition and fees, room and board, books, and computers.
Any Ohio resident who contributes to a CollegeAdvantage account can deduct 529 contributions from his or her Ohio taxable income. The deduction has been increased to $4,000 per year, per beneficiary with unlimited carry forward. The $4,000 per year is the maximum deduction amount and not the maximum contribution amount.
Funds in CollegeAdvantage may be used at any two-year or four-year, public or private, in-state or out-of-state accredited college. Should a student choose to attend a vocational, trade, or technical school, CollegeAdvantage may also be used. CollegeAdvantage may be used at any accredited postsecondary school that accepts federal financial aid.
Savingforcollege.com was created as a private company in 1999 with a mission to help individuals and professional advisors better understand how to meet the challenge of paying for higher education costs. Today, Savingforcollege.com is an industry-trusted informational website that provides analysis and articles on 529 plans, financial aid, scholarships, and tools to help families plan and save for the cost of college.
Ohio’s 529 Plan, CollegeAdvantage, is 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. Ohio is the sixth-largest state sponsor of 529 plans in the country. CollegeAdvantage is offered as the CollegeAdvantage Direct 529 Savings Plan and the Blackrock CollegeAdvantage 529 Plan, which is offered and marketed through BlackRock and sold through professional financial advisors. Ohio’s 529 Plan offers families a tax-advantaged way to save for education expenses after high school. As of March 31, 2019, Ohio’s 529 Plan has more than $11.9 billion in assets under management and almost 641,000 total accounts. To learn more, visit CollegeAdvantage.com.