Ohio’s 529 Announces Important New Milestone to Celebrate National 529 Day

COLUMBUS, Ohio--(BUSINESS WIRE)--Ohio’s 529 Plan announces it has reached an important new milestone in the history of the fund. As of March 31, 2024, there are now $17.22 billion in Assets Under Management (AUM), the largest amount of assets managed since the fund began in 1989 and a 14.5% increase in assets managed compared to the same time last year.

Ohio’s 529 Plan is the seventh largest plan in the country with more than 670,000 accounts, and was recently named the second best 529 plan in the country by TIME Magazine.

“Even though education after high school looks different for every family, families in and around Ohio realize the importance of planning and saving for their children’s future education. As the costs of higher education continue to rise, now more than ever is the time to save and invest for educational or training costs after high school. And Ohio’s 529 Savings Plan is a trusted partner in realizing these savings goals,” said Trisha Good, Executive Director of Ohio’s 529 Plan.

Individuals who save through Ohio’s 529 Plan have a choice of two different plans: the CollegeAdvantage Direct 529 Plan for the do-it yourself investor or the BlackRock CollegeAdvantage Advisor 529 Plan for those who prefer the help of a financial advisor. Funds saved in Ohio’s 529 plan may be used at any school across the country — whether at a typical four-year college or university, two-year community college, technical or trade school, or a certificate program. If the post-secondary school your child elects to attend accepts federal financial aid, Ohio’s 529 Plan can be used there.

Ohio’s 529 Plan helps families with significant tax-advantaged benefits. All contributions and earnings grow tax free, and withdrawals from CollegeAdvantage are tax free when used to pay for qualified higher education expenses including tuition, fees, room and board, books, and computers. Funds can also be used for apprenticeship programs and loan repayments up to $10,000.

Any Ohio resident who contributes to an Ohio 529 Plan account can deduct their 529 contributions from their Ohio taxable income up 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.

New this year, account owners are now able to rollover any unused 529 funds to a Roth IRA, provided the Roth IRA is under the same name as the 529 fund beneficiary. The 529 plan also needs to have been open for a minimum of 15 years, and 529 contributions must have been in the account for at least 5 years before rolling the funds over to a Roth IRA. Additional qualifications must be met to do this rollover.

About CollegeAdvantage

Established Oct. 2, 1989, Ohio Tuition Trust Authority (OTTA) was originally created for the express purpose of helping middle-income families save for college. For over 35 years, Ohio’s 529 Plan has provided families across the nation flexible options and educational resources to invest for higher education expenses after high school.

Ohio’s 529 Plan, CollegeAdvantage, is offered and administered by the OTTA, a state agency under the Office of the Chancellor of the Ohio Department of Higher Education. Ohio is the seventh-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. To learn more, explore Ohio’s 529 Plan at CollegeAdvantage.com.