COLUMBUS, Ohio--(BUSINESS WIRE)--With more than 637,000 active accounts, CollegeAdvantage has officially topped more than $10.35 billion in assets under management. This makes CollegeAdvantage the sixth largest 529 college savings program in the country as of March 31, 2017. “Our program growth can be attributed to our low fees, an impressive investment lineup, a low-cost start-up and our program flexibility,” said Tim Gorrell, Executive Director for the Ohio Tuition Trust Authority, the state agency that manages CollegeAdvantage.
529 plans are named after Section 529 of the Internal Revenue Code. 529 plans are tax-advantage college savings plans, designed to help families plan and save for higher education. Funds saved in CollegeAdvantage (and other 529 plans) are tax-free when used to pay higher education expenses. Higher education expenses include tuition, fees, books, room and board, computers and computer software.
As of March 31, 2017, more than 75% of CollegeAdvantage Direct 529 Savings Plan assets were held by Ohioans and 39% of CollegeAdvantage Advisor 529 Savings Plan assets are held by Ohioans. The remainder of assets in the Direct and Advisor Plans are from individuals who live outside of Ohio but save through CollegeAdvantage. In addition, customers in the CollegeAdvantage Guaranteed 529 Savings Plan have savings totaling $234 million. The CollegeAdvantage Guaranteed 529 Savings Plan has been closed since December 31, 2003 to new enrollments and contributions.
For as little as $25 families can open a CollegeAdvantage account. Families can easily contribute through payroll deduction, Automatic Investment Payment (AIP) or make online contributions. In addition, earnings are tax-free when used for higher education expenses and can be used at any college in the country. Any Ohio taxpayer who contributes to a CollegeAdvantage account can deduct up to $2,000 per contributor, per beneficiary annually from their Ohio taxable income.
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. CollegeAdvantage is offered as the CollegeAdvantage Direct 529 Savings Plan and the CollegeAdvantage Advisor 529 Saving Plan, which is offered and marketed through BlackRock and sold through professional financial advisors. To learn more, visit www.CollegeAdvantage.com.