Your child can pick up a treat at our table at the end of Jesse's Jack-O-Lantern Journey in the indoor area of Asia Quest while you learn about some great tricks about saving in a 529 account.
Some of the 529 treats include:
- tax-free earnings, which means that all the investment growth (including compound interest) is yours to use for your children’s future college costs;
- tax-free withdrawals for qualified higher education expenses;
- Ohio residents who save in Ohio’s 529 Plan can deduct their contributions from their taxable state income. The Ohio deduction amount is $4,000 per year, per beneficiary, with unlimited carry forward. This means that $4,000 is not a contribution cap. If an Ohio taxpayer contributes more than $4,000 in one year, they can continue to deduct $4,000 per year, per beneficiary, from their State of Ohio taxable income until all Ohio 529 Plan contributions have been deducted;
- A 529 account can be used for whatever school comes after high school—including four-year colleges and universities, community colleges, tech, trade or vocational schools, apprenticeships and certificate programs;
- Beginning in January of 2024, a new 529 benefit will go into effect. This new tax-free distribution will allow any unused 529 funds, subject to certain requirements, to roll over to a Roth IRA for the same 529 beneficiary without incurring any penalty on the earnings. This way, you can use their higher education savings to give them a big jump-start on their retirement savings. There are specific requirements in order to use this new qualified 529 distribution. There are still clarifications and operational issues being resolved relating to this change. Ohio’s 529 Plan will provide more information once it is available. Again, keep in mind change does not go into effect until Jan. 1, 2024.