Q. Why should I choose a 529 college savings plan?
A. The 529 college savings plans provide a tax-advantaged college savings option. Withdrawals used for qualified higher education expenses are exempt from federal  and state of Ohio income tax, provided the recipient is not claiming any other education tax incentive.

Q. Why should I choose the CollegeAdvantage 529 plan?
A. CollegeAdvantage has several advantages for Ohio residents. Withdrawals used for qualified higher education expenses are not only exempt from federal, but also state of Ohio income tax, provided the recipient is not claiming any other education tax incentive. Plus, CollegeAdvantage is the ONLY 529 plan that allows contributors to deduct contributions from their state of Ohio taxable income. Finally, CollegeAdvantage offers a diverse choice of investment options managed by Vanguard, Fifth Third Bank, PIMCO, OppenheimerFunds and GE Asset Management.

Q. Can anyone open a CollegeAdvantage account? What about grandparents?
A. A CollegeAdvantage account can be opened by anyone. Grandparents, other relatives or family friends can all be account owners, or simply choose to contribute to an existing account. In addition, a Trust, corporation, non-profit or government entity can also open an account.

Q. Can a beneficiary have more than one account?
A. Yes.  Since only one account owner can be named per account, family members may choose to open their own account for the same beneficiary. No matter how many accounts a beneficiary has, the maximum contribution limit of $331,000 cannot be exceeded when all accounts for a beneficiary are added together.

Q. Does my child have to go to an Ohio college or university?
A. No. CollegeAdvantage funds can be used at any eligible educational institution in the country to pay for qualified higher education expenses. Eligible Educational Institutions are accredited post-secondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized post-secondary credential. Certain proprietary institutions and post-secondary vocational institutions and certain institutions located in foreign countries are also eligible educational institutions. To be an eligible educational institution, the institution must be eligible to participate in U.S. Department of Education student aid programs.

Q.  What if my child doesn’t go to college?
A.  You have several options available if the beneficiary decides not to go to college:

• Change beneficiaries to another family member or even yourself.
• Defer use and leave contributions invested in the account.
• Withdraw the assets in your account.

There may be differing tax consequences for various account changes and withdrawals. Please refer to the Offering Statement and Participation Agreement or consult a tax advisor.

Q.  What if I need to make a withdrawal for non-higher education purposes?
A.  You can withdraw money from your account at any time. However, if the money is not used to pay for qualified higher education expenses, the earnings portion will be taxed as ordinary income at the recipient's tax rate. The earnings portion on withdrawals not used for qualified higher education expenses are also subject to an additional 10% federal tax penalty.

Q.  What if my child is in high school? Is it too late to open an account?
A.  It is never too late to save for higher education. You may open an account for an individual of any age, and the account may be used immediately.

Q.  What if my beneficiary receives a scholarship?
A.  Earnings on the amount you withdraw would be taxed at the recipient's tax rate, but will not be subject to the 10% additional tax penalty. You can also, of course, use your funds to pay for expenses not covered by the scholarship, such as room and board, books and other required supplies.

Q.  What if I'm not an Ohio resident?
A.  You do not have to be an Ohio resident to participate. Anyone nationwide can open a CollegeAdvantage direct-sold account through the Ohio Tuition Trust Authority. Also, a subset of CollegeAdvantage, called Putnam CollegeAdvantage, features Putnam investment options, and is offered through financial advisors nationwide. 

Q.  Can I change the investment options for the assets in my account?
A.  Each time a contribution is made to your account, the contributor can elect how the contribution should be allocated among the investment options chosen by the account owner. However, the account owner may reallocate the assets in the account to other investment option(s) on a limited basis only, currently twice per calendar year (through Dec. 31, 2009). See the Offering Statement for details.

Q.  Can I transfer ownership of my account to someone else?
A.  Yes. You may transfer ownership of your account to another person by completing the appropriate form. Because the IRS has not yet issued any formal guidance on the federal tax consequences of such transfers, however, you may wish to consult your tax or legal advisor prior to transferring your account. When you open your account, you can also name a person to succeed to ownership of the account in the event of your death (successor owner).

Q.  Who qualifies as a family member of the beneficiary?
A.  A qualifying family member includes:

• Natural or legally adopted children
• Parents or ancestors of parents
• Siblings or stepsiblings
• Stepchildren
• Stepparents
• First cousins
• Nieces or nephews
• Aunts or uncles

In addition, the spouse of the beneficiary or the spouse of any of those mentioned above also qualifies as a family member of the beneficiary.

Q.  Does having a CollegeAdvantage account impact a student’s eligibility for financial aid?
A.  When it comes to financial aid, ANY assets that you or the beneficiary own can affect your eligibility. But 529 plans have important advantages over many other college savings vehicles. Your CollegeAdvantage account is considered to be an asset of the account owner. If the parent is the account owner, this means that, on average, about 5.64% of the value of the account isconsidered in determining the Expected Family Contribution (EFC) calculation for federal financial aid purposes. (The EFC is the amount the family of the beneficiary is expected to pay toward that beneficiary's college education.)  

Assets from a 529 prepaid tuition plan, like the suspended Guaranteed Savings Fund, are now treated as an asset and are reported on the FAFSA just like Section 529 college savings plans. 

Q. What are "qualified higher education expenses?"
A. Qualified higher education expenses are tuition, fees, books, supplies and equipment required for enrollment at an eligible educational institution. Room and board expenses are limited to the current allowance for room and boarddetermined by the eligible educational institution for federal financial aid purposes, or actual invoice amount charged by the institution to the beneficiary, if greater. 

In addition, qualified higher education expenses also include expenses of a special needs Beneficiary that are necessary in connection with his or her enrollment or attendance at an eligible educational institution. However, qualified higher education expenses are reduced to the extent that such expenses are taken into account in claiming the Hope Scholarship Credit or Lifetime Learning credit.

Q. Can I invest in both CollegeAdvantage and a Coverdell Education Savings Account (formerly Education IRA)?
A. Yes. You can contribute to both types of college savings options. You can also choose to rollover funds from a Coverdell Education Savings Account to CollegeAdvantage tax-free. An account statement reflecting principal and earnings for the Coverdell account is required.

Q: How will I know my account balance?
A: CollegeAdvantage mails quarterly account statements to account owners. In addition, you can also access your account information through the "My Account" section on this Web site or call 1-800-AFFORD-IT (233-6734). 

Q: How much does it cost to open a CollegeAdvantage account?
A: You pay no enrollment fee to open a CollegeAdvantage account. Contribute as little as $25 to get started.

Q: How do I make additional contributions?
A: You can invest three ways: with personalized contribution slips, through a one-time or recurring electronic funds transfer (EFT) from a bank account or through payroll deduction. The minimum contribution is $25, or $500 for a Fifth Third 529 Certificate of Deposit.