With the New Year right around the corner, Ohio’s 529 Plan is encouraging Ohioans to resolve to make saving for higher education a priority and get a head start before 2019 comes to a close. When Ohioans enroll and/or contribute to an Ohio 529 savings plan, they can claim a deduction up to $4,000 per beneficiary, per year on their state of Ohio taxable income. All contributions for 2019 must be received by Ohio’s 529 Plan, CollegeAdvantage, in good order before 4 p.m. EST on Dec. 31, 2019.
Ohio’s 529 Plan provides tax advantages to help families reach their college savings goals. Any Ohio taxpayer — including parents, grandparents, family members, and friends — can help open the door to higher education for a loved one by contributing to a plan. Any Ohio resident who contributes directly to a child’s Ohio 529 account can claim the State of Ohio tax deduction, even if they are not the account owner. Account owners pay no taxes on earnings, and withdrawals used for qualified higher education expenses are exempt from both federal and state taxes.
“The end of the year is the perfect moment in time to revisit and review your savings goals for higher education, and ensure that you’re maximizing all the 529 tax benefits to grow your account – from tax-free earnings, to tax free-withdrawals, to state income tax deductions,” said Tim Gorrell, executive director of the Ohio Tuition Trust Authority.
Families interested in starting to save for higher education expenses before the end of the year should visit CollegeAdvantage.com to get started with as little as $25. Funds saved in Ohio’s 529 Plan can be used at thousands of schools nationwide, including two-year, four-year, or graduate schools as well as trade, vocational or certificate programs, to pay tuition, fees, books, room and board, and computers.