Now that is December, are you still looking for gift that will last a lifetime? Ohio 529, CollegeAdvantage, can help at 529 Gift Central with the gift of education! A contribution to an Ohio 529 account —whether adding to an existing account or opening a new 529—is an investment in your children or grandchildren’s future. It will have a huge positive long-term impact, helping them pay for their college and career training after high school. It will also help your loved ones avoid student loan debt. And we have an app that makes it easy for others to contribute to your Ohio 529 account.
What is a 529 plan?
529 plan is a savings account that grows with many tax benefits, starting with tax-free earnings. This means all investment growth is yours to use for education after high school. Withdrawals from a 529 plan that pay for qualified higher education expenses are also tax-free. These costs include tuition, fees, room and board, books, computers, class supplies, certain apprenticeship costs, mandatory fees, and more. Families can even use up to $10,000 for student loan repayment for the beneficiary of the 529 account as well as their siblings. You can also use your Ohio 529 plan to pay K-12 tuition up to $10,000 per student, per year, for enrollment at public, private, or religious elementary or secondary school. Finally, as of January 1, 2024, you can rollover remaining 529 funds to a Roth IRA, provided certain requirements are met.
An Ohio 529 account can be used tax-free for all types of qualified higher education institutions nationwide, including four-year colleges and universities, community colleges, technical or trade schools, certificate programs, or apprenticeships. If the institution accepts federal financial aid, you can use the 529 plan there. For apprenticeships, the program must be registered with the Secretary of Labor’s National Apprenticeships Act. Check the U.S. Labor Department’s search tool to confirm that a program is registered, and therefore, eligible for a 529 withdrawal.
There is no fee to open an Ohio 529 account. Contributions start as low as $25 and can be increased to any amount, at any time. You can set up an automatic monthly contribution to your 529 account to grow your loved one’s college savings.
State tax deduction for Ohioans giving to Ohio 529
If you, or any gift giver, are an Ohio resident, then you could both be eligible to deduct up to $4,000 of your Ohio 529 contributions per beneficiary, per year, from your state taxable income. However, you can contribute even more! Contributions over $4,000 per beneficiary, per year, can be carried forward to future tax years until you have deducted all your contributions from your state taxable income. To have your contributions included for the 2024 State of Ohio income tax deduction, contributions from the account owner must be received in good order by CollegeAdvantage before 4 p.m. EST Tuesday, Dec. 31. For non-account owners contributing via Ugift, the contribution must be received in good order before 4 p.m. EST Thursday, Dec. 19.
Saving Made Easy With READYSAVE 529 app
For quick and simple access to your college savings account, use the READYSAVE 529 app. Our 529 savings app, developed in conjunction with our recordkeeping partner, Ascensus, makes it easy for you to access your account information, track account growth, and make both one-time and recurring contributions for as little as $25 from the bank account on file from your cell phone.
You can download the READYSAVE 529 app now from the Apple and Google Play app stores. Once you install the app, select Ohio 529 from the list and log in with the same username and password you use to access your account online.
Others can give to your Ohio 529 account
If you already have a CollegeAdvantage Direct Plan account and the READYSAVE 529 app, you can provide other family members a Ugift code for your child’s account. This code permits others to make online gift contributions directly to your CollegeAdvantage Direct 529 Plan without needing the 529 account number. In the READYSAVE 529 app, you can send the Ugift invitation to your family and friends either through a text message, email, Facebook Messenger, Facebook post, or Instagram Message — just in time for the holidays and end-of-year giving.
If a loved one who is an Ohio resident wants to give a gift of education to your Ohio 529 account through Ugift, their contribution must be received in good order before 4 p.m. EST Thursday, Dec. 19, to include it in their 2024 State of Ohio income tax deduction.
To learn more about gifting options with Ohio 529 and order holiday and special occasion greeting cards, visit 529 Gift Central.
Since 1989, Ohio 529 has been helping families across the nation save for their children’s education after high school. Ohio 529 covers qualified costs at any four-year college or university, two-year community college, trade or vocational school, apprenticeship approved by the U.S. Labor Department, or certificate program nationwide that accepts federal financial aid.
Start, add, or give a gift this holiday season with as little as $25 at CollegeAdvantage.com.
This article was originally posted in November 2020 and has been updated to reflect new information for 2024.
