COLUMBUS, Ohio--(BUSINESS WIRE)--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.