Tags: Retirement | 529 plans | Ohio | facts

Facts About Ohio's 529 Plans

By    |   Wednesday, 20 May 2015 01:15 PM

When choosing a 529 plan to help with a student’s future higher education costs, there are many different options and it can be confusing to figure out which one to choose. Whether it is an Ohio offered 529 plan or a prepaid tuition plan, both offer numerous benefits and costs.

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Ohio is ranked as one of the best states in the United States when it comes to their college savings plan, so residents there have a lot to gain by taking advantage of the program. Here are six facts about the Ohio 529 plans to consider when making your decision.
  1. According to SavingForCollege.com, Ohio offers two 529 plans for prospective students. The first is a direct-sold 529 plan called the Ohio CollegeAdvantage 529 Savings Plan. This plan is eligible for any resident of any state to purchase. This plan also includes savings accounts and certificates of deposits from the Fifth Third Bank, as well as offers from Vanguard, GE Asset Management, PIMCO, and Oppenheimer Funds.
  2. The second 529 plan offered in Ohio is the BlackRock CollegeAdvantage plan. This is an advisor-sold plan that offers both age-based and asset-allocation options. Like most adviser-offered plans, this one has slightly larger fees than the state’s 529 plan. The only other 529 plan offered for prospective students’ families, is a prepaid tuition savings fund.
  3. Ohio offers tax benefits for anyone taking advantage of the CollegeAdvantage 529 plan. All contributions are counted as deductions from Ohio taxable income. Individuals can deduct up to $2,000 per year for each beneficiary. This tax break is for anyone who is a contributor to the 529 plan, so grandparents, aunts, uncles, and more can take advantage of the tax deduction when they invest in the student’s future education expenses.
  4. In 2009, Morningstar ranked the Ohio CollegeAdvantage 529 plan as one of the five best in the United States. The report indicated that one big advantage to this plan was that it uses the Ohio Tuition Trust Authority to manage the plan instead of mutual fund companies. This allows the 529 plan to use any number of companies to invest through. It also hypes its low fees and four different age-based options.
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  6. The Ohio CollegeAdvantage 529 plan is not just limited to Ohio universities. Students can use this plan’s money to attend any college or university across the United States that is eligible for financial aid. This includes both two and four-year universities, as well as graduate colleges and trade schools. According to reports, there are over 1,800 different schools that the Ohio 529 plan can be used for students to attend.
  7. According to U.S. News, The advisor-sold BlackRock College Advantage 529 plan is managed by BlackRock Investments LLC. There are three age-based options included here, as well as 18 static options for investments. As the student gets closer to college admission, this program also becomes more conservative. Because BlackRock uses iShares ETFs, they can make many short-term tactical trades to attempt to build up the portfolio.
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When choosing a 529 plan to help with a student's future higher education costs, there are many different options and it can be confusing to figure out which one to choose.
529 plans, Ohio, facts
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2015-15-20
Wednesday, 20 May 2015 01:15 PM
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