www.collegeadvantage.com Open in urlscan Pro
131.187.124.164  Public Scan

Form analysis
0 forms found in the DOM

Text Content

This site performs best with JavaScript enabled.

Skip Navigation
Ohio Tuition Trust Authority


COLLEGE ADVANTAGE - OHIO'S 529 SAVINGS PROGRAM

 * Tools
 * Offering Statement
 * Forms
 * Fees, Performance & Price History
 * 529 Explorer

 * 529s in 29 Seconds
 * 529 Gift Central
 * Request a CollegeAdvantage Kit
 * Account Login

 * Learn
 * Plan
 * Start
 * Manage
 * Open An Account
 * Account Login
 * 

Search Textbox

 * 
 * Learn
    * More savings equals less debt equals more options in life.
    * Comparing bank accounts with 529 Plans - plus all the other ways to save.
    * Get the facts about Ohio’s 529 Plan starting with where you can use it.
    * How grandparents and other family members can help save for college.
    * When families typically start and add to their college savings.

 * Plan
    * What kind of school are you thinking?
    * What do you want your savings to cover?
    * How much are you going to save?
    * What kind of risk/reward do you want?
    * Choose your 529 Plan investment(s).

 * Start
    * Open an account
    * Add to my existing account
    * Add to someone else's existing account
    * Open my saved or pre-filled account application

 * Manage
    * Busy life? Set up your account to build itself.
    * Have U shared your Ugift code with family and friends?
    * Here’s a to-do list for account owners.
    * Want to see your other investment options?
    * Here’s what you should think about at each key stage.
    * Resources for guaranteed plan participants.

 * 529s in 29 Seconds
 * 529 Explorer
 * 529 Gift Central
 * Request A CollegeAdvantage Kit
 * About Us

 * Contact Us
 * Privacy Notice
 * Legal

 * Home
 * 529 Explorer


10.30.2023


THE 529 TRUTH TO CONQUER YOUR COLLEGE SAVING FEARS


Parents

If your mind is filled with scary thoughts on how to pay for your children’s
future higher education, then let Ohio’s 529 Plan calm your concerns. There are
some spooky tales out there about 529 plans. Just in time for this Halloween
2023, here’s the truth about all the benefits of saving in a 529 account and how
flexible your account can be.


WHAT IF I SAVE IN MY STATE’S 529 PLAN BUT MY CHILD WANTS TO GO TO AN
OUT-OF-STATE SCHOOL?

Truth: Your Ohio 529 college savings account can be used nationwide for whatever
school comes after high school for your child–whether for an associate,
bachelor’s, graduate, professional, vocational degree, certificate program, or
an apprenticeship. If the institution of higher education has a Federal School
Code on the Free Application for Federal Student Aid (FAFSA), then you can make
tax-free withdrawals to cover qualified expenses there.


WHAT IF MY CHILD DOESN’T GO TO COLLEGE?

Truth: You always have access to the funds saved in your Ohio 529 account and
you always have options.

First, 529 plans can be used many types of higher education, not only four-year
colleges or universities, but also two-year community colleges, trade or
vocational schools, apprenticeships, and certificate programs. For example, if
your child wants to attend a welding program after high school, you can use your
529 plan to cover qualified costs there if the institution accepts federal
financial aid. Again, make sure the school has a Federal School Code on FAFSA to
use your 529 funds there tax-free.

Also, there are no time limits on when you must use a 529 plan so you can wait
to see if your child rethinks their decision about wanting a higher education.

If the your child still decides against pursuing a higher education, you can
transfer the 529 account to another member of the family–anyone related by
blood, marriage or adoption–without any fees. The money you set aside for their
higher education can be transferred to their sibling, their cousin, or even
yourself. To simplify this transfer, you can now do this process online.

Starting January 2024, the newest tax-free 529 distribution will allow any
unused 529 funds (subject to the requirements listed below) to roll over to a
Roth IRA for the same 529 beneficiary without incurring any penalty on the
earnings. This new benefit will go into effect Jan. 1, 2024. There are
requirements to use this new qualified distribution. First, a 529 account must
be open for the beneficiary for 15 years. Second, the Roth IRA must be for the
same beneficiary of the 529. Third, your contributions—which are also known as
the principal—must have been in your Ohio 529 account for at least five years
before the Roth IRA rollover. Fourth, you can only roll over 529 funds up to the
yearly Roth IRA contribution limit, which is $6,500 for 2023. Fifth, the
lifetime maximum 529 amount allowed for the Roth IRA rollover is $35,000. There
are still many clarifications and operational issues that will need to be
resolved relating to this recent change. We will provide more information once
available. Again, bear in mind change does not go into effect until Jan. 1,
2024.

There is always the option of withdrawing all the 529 funds. This will be
a non-qualified withdrawal; therefore, a 10% federal tax penalty will be
imposed—just the same as if you take an early withdrawal from a retirement
savings vehicle—but only on the earnings portion of the withdrawal. You would
also be liable for any federal, state, and local income taxes on the earnings.


WHAT COSTS CAN A 529 PLAN COVER?

Truth: One of the great advantages of saving for college in a 529 plan are
tax-free withdrawals for qualified higher education expenses. If the cost is
required for enrollment or attendance at a post-secondary educational institute,
then it will mostly be a qualified higher education expense. For 529 accounts,
they include:

 * Tuition;
 * Room and board during any academic period in which the 529 beneficiary with a
   half of the full-time academic workload according to the school. Room and
   board costs can include rent for off-campus residency and groceries
   (non-taxable items), provided these costs are equal or less than the same
   room and board allowances as the school;
 * Mandatory fees;
 * Computer equipment and related technology as well as internet services;
 * Books, supplies and equipment related to enrollment and class schedule;
 * Certain apprenticeships costs — fees, textbooks, supplies, and equipment,
   including required trade tools. The apprenticeship must be registered with
   the Secretary of Labor’s National Apprenticeships Act;
 * Federal student loan payments. There is a $10,000 lifetime limit per 529
   beneficiary. However, an additional $10,000 can be used to repay qualified
   student loans for each of the beneficiary’s siblings; and
 * K-12 tuition up to $10,000 per student, per year, for enrollment at public,
   private, or religious elementary or secondary school. If there are multiple
   accounts for a student, the combined 529 distributions to pay for their K-12
   tuition is limited to $10,000 per year. Consult your qualified tax advisor
   for specific information.


WHAT IF MY CHILD GETS A SCHOLARSHIP?

Truth: 529 plans are made to work with scholarships so your 529 college saving
account is still an important component of your higher education strategy. Very
few scholarships cover 100% of the costs; for instance, a scholarship may only
cover the cost of tuition. A 529 plan is perfect to pay for any qualified
expenses that the scholarship doesn’t cover.

Also, you can withdrawal the exact amount of the scholarship from your 529
account. This would be treated as a non-qualified withdrawal, but only the
earnings portion of the withdrawal will be subject to federal and state taxes. A
scholarship withdrawal is exempt from the 10% federal tax penalty.


WILL MY SAVINGS IN A 529 AFFECT FINANCIAL AID?

Truth: If you, as a parent, own a 529 account for your child, the funds will
only be included up to the maximum amount of 5.64% in the Student Aid Index
(SIA) on FAFSA. Put another way, if you have $10,000 in a 529 plan, only $564
will count in the federal financial aid calculations. The Student Aid Index
(SAI) will replace the Expected Family Contribution (EFC). Like the EFC, the new
SAI will estimate what families can pay for their children’s higher education as
determined by the family’s assets as well as other financial assistance the
student would receive.


WHAT IF I’M STARTING TOO LATE?

Truth: It’s never too late to save for higher education costs. Unless your
student is in the last semester of their higher education, there’s still time to
save whether the future is next semester or next decade. Every dollar you save
now is one that your child won’t have to borrow. Start your savings with a
tax-advantaged 529 plan in which earnings grow tax free and withdrawals are tax
free when used for qualified higher education expenses.

For Ohio residents who contribute to an Ohio’s 529 account, they can deduct up
to $4,000 from their Ohio state tax income tax for matching 529 contributions.
However, the $4,000 deduction limit is not a contribution cap. For Ohioans who
contribute over $4,000 per account, per year, they can carry forward this
deduction to their Ohio adjusted gross income for subsequent tax years until all
of their contributions are fully deducted.

To fully explain the unlimited carry forward of the state income tax deduction,
let’s use two examples. An Ohio taxpayer contributes $4,000 to two 529 accounts
for each of her two children, for a total of $8,000. She could deduct a total of
$8,000 from her Ohio taxable income for the year. Alternatively, if an Ohio
taxpayer contributed $8,000 to a CollegeAdvantage Direct Plan Account for one
child in one year, he could deduct $4,000 from his Ohio taxable income during
the current year, and the next year.


IS IT EXPENSIVE TO START SAVING WITH OHIO 529?

Truth: No! With Ohio’s 529 Plan, it only takes $25 to start and there is no fee
to open a tax-free Ohio 529 account. To start, you just need to make your first
contribution of $25 or more to your Ohio 529 college savings account. It’s that
easy. When you are ready to add to your 529 plan, the minimum contribution
amount is still $25.

To make saving easy, Ohio’s 529 Plan offers the ReadySave 529 app. On our app,
you can access your account information, track account growth, and make both
one-time and recurring contributions from your cell phone. And with the
READYSAVE529 app, you can send an invitation to your family and friends to
contribute to your child’s higher education via Ugift.


HOW CAN I START SAVING WITH OHIO 529?

Truth: Ohio’s 529 Plan wants to help you! We offer tools and calculators to
shape your 529 plan. Crunch the numbers with the College Savings Estimator to
calculate estimated college costs and determine the monthly amount to contribute
to reach your savings goals. If you’re wondering when you should start saving
for their higher education, use the Cost of Delaying Tool to see how starting
early can build the 529 plan. The Tax Benefit Calculator shows how a
tax-advantaged 529 plan can grow when compared to a taxable savings account.
Don’t forget, the sooner you start the 529 account, the sooner the power of
compound interest and tax-free earnings can go to work growing the account. Use
our 529 Explorer and our 529s in 29 seconds video library as resources to find
answers to more specific questions you may have. If you already have a 529 plan,
it might be time to review these life-stage account strategies  to keep your 529
account synced with what is going on in your family’s life.

Visit Ohio’s 529 Plan online to dispel those college savings fears and start
saving today for your child’s future education with as little as $25. 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. Learn, plan, and
start with Ohio’s 529 Plan today at CollegeAdvantage.

This article was originally posted in October 2020 and has been updated to
reflect new information for 2023.

close Have specific 529 questions?


INFO HUB

 * 529s At A Glance
 * Map Of Schools
 * Most Popular Investment Options
 * FAQs

--------------------------------------------------------------------------------


INTERACTIVE TOOLS

 * Calculate How Much To Save
 * 5-Decision Investment Selection Tool

Information for:

 * Employers
 * Financial Advisors
 * Non-Profit Organizations

Quick links to:

 * Open a Direct 529 Account
 * 529 Explorer
 * Forms
 * Guaranteed Plan Resources
 * Blackrock CollegeAdvantage
 * Calculators & Tools
 * Fees and Expenses
 * General FAQs
 * College Planning Resources
 * UGift529.com
 * Upromise

Ohio Tuition Trust Authority

 * About Us
 * Contact Us
 * Privacy Notice
 * Accessibility Policy
 * Disability Inclusion Access
 * Legal Disclosures
 * Sitemap

 

 

Before investing, read the Disclosures and the 
Direct Plan Offering Statement

 

© Ohio Tuition Trust Authority.
All rights reserved.

 

Back To Top
×



529S AT A GLANCE

×


QUICK FACTS ABOUT OHIO’S 529 PLAN

 * Better growth potential than a typical savings account
 * Helps reduce the chance of overwhelming student debt
 * Money grows tax-free and remains tax-free when spent on qualified expenses
 * Ohio tax deduction up to $4,000 per child, per year
 * Not just for Ohio schools — use the funds nationwide 
 * Use for college, trade school, certificate programs, grad school,
   apprenticeships, and more
 * No annoying fees and cost-efficient investment options
 * Flexible options if your child decides not to go to college
 * Won’t harm chances of future scholarships like other savings approaches


USE OHIO’S 529 PLAN AT OVER 30,000 SCHOOLS NATIONWIDE.

×
It’s not just for traditional four year colleges. You can use the money you’ve
saved in Ohio’s 529 Plan at community colleges, trade and specialty schools,
certificate programs, apprenticeships, graduate and professional schools, and
more. 


To use 529 plans tax-free for qualified higher education expenses, the school
must be federally accredited and accept federal financial aid from the U.S.
Department of Education. To see if an institution qualifies, check here.


COLLEGE SAVINGS PLANNER

×



FAQS

×


GENERAL FAQS


WHAT IS COLLEGEADVANTAGE?

CollegeAdvantage is Ohio’s 529 college savings program designed to help
individuals and families save for college in a tax-advantaged way.  The Ohio
Tuition Trust Authority, a state agency within the Office of the Chancellor of
the Ohio Department of Higher Education, sponsors and manages the
program. CollegeAdvantage is offered as two plans: the CollegeAdvantage Direct
529 Savings Plan provides a do-it-yourself approach, while the CollegeAdvantage
Advisor 529 Savings Plan offered by BlackRock must be opened through a
professional financial advisor. Both plans offer advantages including: tax-free
earnings,1 diverse investment options, and professionally managed funds. The
Ohio Tuition Trust Authority also manages the CollegeAdvantage Guaranteed 529
Savings Plan, which remains closed since December 31, 2003, to new enrollments
and contributions.



HOW DOES COLLEGEADVANTAGE WORK?

When you open an account in the CollegeAdvantage Direct Plan, you can choose to
invest in Ready-Made, Age-Based Portfolios, Ready-Made, Risk-Based Portfolios or
one or more other individual investment options based upon your investing
preferences, savings goals, and risk tolerance. The choices are yours. The
CollegeAdvantage Advisor Plan offers a variety of investment options that you
and your financial advisor choose to achieve your college savings goals. All of
the contributions made to your account grow tax-free and withdrawals are free
from federal and state tax if used for qualified higher education expenses. In
addition, State of Ohio taxpayers can deduct contributions up to $ 4,000 from
their Ohio taxable income per beneficiary, per year, with unlimited carryforward
of contributions over that amount.




HOW DO I OPEN A COLLEGEADVANTAGE ACCOUNT?

The easiest way to open a CollegeAdvantage Direct Plan account is to enroll
online at CollegeAdvantage.com. It only takes about 10 minutes. If you prefer to
enroll by mail, complete the Account Application form. To open a
CollegeAdvantage Advisor Plan account, contact a financial advisor.




HOW MUCH DO I NEED TO OPEN AN ACCOUNT?

CollegeAdvantage offers low initial and subsequent minimum contributions of as
little as $25. The Fifth Third Certificate of Deposit requires a $500 minimum
contribution.


WHO CAN OPEN A COLLEGEADVANTAGE ACCOUNT?

Any U.S. citizen or resident alien, 18 or older, with a Social Security number
or Tax Identification Number and U.S. street address, can open an account,
regardless of income level. Parents, grandparents, other family, and friends can
open an account for anyone they choose. You do not have to be related to the
beneficiary of your account. You can also open an account to pay for your own
higher education. Certain trusts and entities may also open an account.



WHO CAN CONTRIBUTE TO A 529?

Anyone2 can contribute to the same CollegeAdvantage account, but total
contributions cannot exceed the Account Contribution Limit (see the Plan
Offering Statement for the most current limit) for all CollegeAdvantage accounts
for the same beneficiary. A contributor who is an Ohio taxpayer, even if they
are not the Account Owner, may take the deduction from Ohio taxable income for
the contributions they make to a CollegeAdvantage account up to the $ 4,000
deduction limit.



WHO CAN BE A BENEFICIARY?

Any U.S. citizen or resident alien of any age with a Social Security Number can
be named as the beneficiary of a CollegeAdvantage account. As the Account Owner,
you can designate a child, adult, or even yourself as the beneficiary.



DOES MY BENEFICIARY HAVE TO ATTEND COLLEGE IN OHIO?

No. You can use the assets in your account toward the costs of nearly any public
or private, 2-year or 4-year college nationwide, as long as the student is
enrolled in a U.S.-accredited college, university, graduate school, or technical
school that is eligible to participate in U.S. Department of Education student
financial aid programs. In fact, many U.S. colleges and universities now have
campuses or locations outside of the country, where money from your account can
also be used. A school is eligible if they have a Federal School Code, which can
be searched at www.fafsa.gov.


WHAT IF MY BENEFICIARY DOES NOT GO TO COLLEGE IMMEDIATELY AFTER HIGH SCHOOL?

CollegeAdvantage does not require a child to attend college immediately after
graduating high school. There are no age restrictions on when you can use your
account to pay for college expenses.



ARE INVESTMENTS IN COLLEGEADVANTAGE GUARANTEED?

Only contributions to and earnings on the Bank Options are insured by the FDIC,
up to certain limits. No other investments are insured or guaranteed by
CollegeAdvantage or any other entity. Investment returns will vary depending
upon the performance of the investment options you choose. The Account Owner
bears all risk, including the risk of loss of all investments.



WHAT IS UGIFT®?

Ugift is an innovative way to invite family and friends to save for college by
celebrating occasions, achievements, and events with gift contributions to your
CollegeAdvantage Direct Plan account. To utilize Ugift, log in to your Direct
Plan account.



WHAT IS UPROMISE® AND HOW CAN IT HELP ME SAVE FOR COLLEGE?



Boost your college savings with Upromise® 

Upromise® is a free service that helps families save for college. Upromise
provides unique opportunities for members to earn cash back rewards for everyday
activities such as shopping, dining and more. Rewards are automatically
deposited as contributions to your Ohio's 529 Plan, CollegeAdvantage, when you
reach $50 in rewards.

Join Upromise for free today:


 * Earn $5.29 in bonus rewards when you open a new Upromise account.
 * Earn an additional $25 in bonus rewards when you link your first Ohio's 529
   Plan account to your new Upromise account.
 * Earn additional rewards continuously by shopping online through Upromise.com
   and dining at over 10,000 restaurants nationwide.  
 * You’re automatically entered into the monthly Upromise 529 Scholarship
   drawing of five $529 scholarships.

Learn more at Upromise.com. It’s fast, easy, and secure.

Disclosure

Upromise is an optional program offered by Upromise, LLC, is separate from the
Ohio's 529 Plan, CollegeAdvantage, and is not affiliated with the Ohio's 529
Plan. Separate terms and conditions apply to the Upromise program, and you will
be required to read and agree to them at sign-up. Participating companies,
contribution levels, and terms and conditions are subject to change at any time
without notice. Transfers from Upromise to an Ohio's 529 Plan, CollegeAdvantage
account are subject to a $50 minimum.

Upromise and the Upromise logo are registered service marks of Upromise, LLC.





WHAT IMPACT DOES A 529 PLAN HAVE ON ELIGIBILITY FOR FEDERAL FINANCIAL AID?

529 plan assets are counted at different rates for the Expected Family
Contribution (EFC) in the FAFSA formula. Current federal guidelines are as
follows:

If the student is a dependent, a 529 plan account is considered as the parent's
asset (if the Account Owner is the parent or the dependent student). As a
result, it will generally be counted at a rate of only 5.64% of its value for
the EFC.

If the student is not a dependent and is the Account Owner, the 529 plan account
is treated as the student's asset and is generally factored into the EFC at the
higher rate of 20%.

In other cases, the account does not count as an asset for federal financial aid
purposes. However, a student may have to report distributions received from the
account as income for these purposes.

Note: Financial aid programs offered by educational institutions and other
non-federal sources may have their own guidelines for the treatment of 529 plan
accounts. For complete information about financial aid eligibility, you should
consult with a financial aid professional and/or the state or educational
institution offering a particular financial aid program, since rules and
regulations often change.


FOOTNOTES: GENERAL

1 Earnings on non-qualified withdrawals are subject to federal income tax and
may be subject to a 10% federal penalty tax, as well as state and local income
taxes. The availability of tax or other benefits may be contingent on meeting
other requirements.

2 If you contribute to an account owned by someone else, you give up all rights
to the money contributed to that account.


TAX FAQS


HOW DO I ACCESS TAX FORMS AND OTHER ACCOUNT DOCUMENTS?

In addition to your 1099Q tax form, you can also download account statements and
confirmations of account activity online. Simply log in, and within two clicks,
you can select the documents you need. Watch this short video for all the
details.

View Transcript




WHAT TAX BENEFITS CAN I GET FROM COLLEGEADVANTAGE?

Earnings grow tax free from federal and state income tax when used for qualified
higher education expenses.1 Qualified higher education expenses include tuition,
mandatory fees, books, supplies, and equipment required for enrollment or
attendance; certain room and board costs during any academic period the
beneficiary is enrolled at least half-time; certain expenses for a special-needs
student; and withdrawals up to $10,000 per student, per year, for K-12 tuition
at a public, private, or religious elementary or secondary schools.



ARE THERE ANY SPECIAL TAX BENEFITS FOR OHIO TAXPAYERS?

Yes. If you are an Ohio taxpayer, you are eligible to deduct up to $ 4,000 of
contributions per beneficiary, per year from your State of Ohio taxable income,
with unlimited carryforward. You do not have to be the Account Owner to deduct
contributions from your State of Ohio taxable income. The benefit is per
contributor or married couple.



WHAT ARE THE PLAN'S GIFT- AND ESTATE-TAX BENEFITS?

Per federal 529 laws, individuals can invest up to $17,000 ($34,000 for married
couples) per beneficiary without incurring any federal gift-tax consequences.
You can also contribute up to $85,000 per beneficiary in a single year ($170,000
for married couples) and take advantage of five years' worth of tax-free gifts
at one time. (Contributions are considered completed gifts and are removed from
your estate,2 but you, as the Account Owner, retain control.) Upon the death of
the Account Owner, money remaining in the account will not be included in the
Account Owner's estate for federal estate tax purposes. For more information,
consult your tax advisor or estate-planning attorney.



FOOTNOTES: TAXES

1 Earnings on non-qualified withdrawals are subject to federal income tax and
may be subject to a 10% federal penalty tax, as well as state and local income
taxes. The availability of tax or other benefits may be contingent on meeting
other requirements. See the Plan's Offering Statement and Participation
Agreement for more details on qualified expenses.

2 In the event the donor does not survive the five-year period, a pro-rated
amount will revert to the donor's taxable estate.


ACCOUNT FAQS


HOW CAN I MAKE CONTRIBUTIONS TO MY ACCOUNT?

Electronic Bank Transfer from your checking or savings account

Automatic Investment Plan (AIP) with scheduled recurring contributions

Payroll deduction through participating employers

Check (made payable to the Ohio Tuition Trust Authority)

Rollover from another 529 plan

Rollover from a Coverdell Education Savings Account or a qualified Series EE or
Series I U.S. Savings Bond

Exchange from a different CollegeAdvantage Plan

Transfer of cash from an UGMA/UTMA account (Consult with a tax advisor regarding
tax consequences)

Ugift® - a way to invite family and friends to give the gift of education

Upromise® - grow your savings even more by linking your CollegeAdvantage Direct
Plan to your Upromise account and automatically transferring your Upromise
earnings into your CollegeAdvantage Direct Plan (available for the Direct Plan
only)




DO I RETAIN CONTROL OF THE ACCOUNT?

Yes. As the Account Owner, you choose your investment options, and you decide
when and where the money will be used.




CAN I MAKE AN INVESTMENT CHANGE IN MY ACCOUNT?

Yes. You can change the direction of your future contributions at any time. For
existing investments, federal 529 law permits you to exchange the assets in your
CollegeAdvantage account to a different mix of investment options twice per
calendar year.




HOW CAN I USE THE MONEY IN MY ACCOUNT?

The money in your CollegeAdvantage account can be used for any purpose. However,
to qualify for federal tax-free withdrawals on earnings and avoid penalties, the
money must be used for qualified higher education expenses for the beneficiary
at an eligible educational institution. 1, 2


CAN I CHANGE THE BENEFICIARY OF MY ACCOUNT?

Yes. You can transfer your account to a "member of the family" 3 of the
beneficiary without incurring federal income tax or penalties.

To change a beneficiary, complete the Beneficiary Change Form.


WHAT COUNTS AS A QUALIFIED HIGHER EDUCATION EXPENSE?

Eligible expenses include tuition, mandatory fees, computer equipment and
related technology and services, books, supplies, and equipment required for
enrollment or attendance; room and board costs during any academic period the
beneficiary is enrolled at least half-time; and certain expenses for a
special-needs student.

Account owners can also choose to use 529 assets to pay K-12 tuition up to
$10,000 per student, per year, for enrollment at public, private, or religious
elementary or secondary school. If there are multiple accounts for a student,
the combined 529 distributions to pay for their K-12 tuition is limited to
$10,000 per year. Consult your qualified tax advisor for specific information.  

The Further Consolidated Appropriations Act 2020 includes provisions that 1)
allow 529 withdrawals to pay for certain expenses associated with apprenticeship
programs registered and certified by the Secretary of Labor under the National
Apprenticeship Act, and 2) to pay principal and interest on certain qualified
education loans for the beneficiary of your account or any of the beneficiary’s
siblings.The loan repayment provisions apply to repayments up to $10,000 per
individual. This $10,000 is a lifetime amount, not an annual limit. Withdrawals
for student loan repayment and/or apprenticeships can only be made to the
Account Owner or the Beneficiary.




WHAT IF I RECEIVE A REFUND FROM MY CHILD’S SCHOOL?

If you receive a refund of funds originally withdrawn from your 529 account, you
may re-contribute the funds (up to the amount of the refund) within 60 days
after the date of the refund without penalty. The re-contribution must be made
by check, not electronically.

Pursuant to recent changes in federal law, which are retroactively effective
January 1, 2015 a beneficiary who receives a refund of any qualified higher
education expenses from an eligible educational institution may re-contribute
funds originally withdrawn from your Account, up to the refunded amount within
60 days after the date of the refund without penalty. A transition rule
contained in the federal law permits any such refund received after December 31,
2014 and before December 18, 2015 to be re-contributed at any time through
February 16, 2016.

The individual making the re-contribution is responsible for maintaining all
documentation linking the re-contribution to the refund from the eligible
educational institution. Without such documentation, the original withdrawal may
be considered a non-qualified withdrawal by the IRS. You should consult your tax
advisor regarding the tax implications (including but not limited to income,
gift and generation-skipping taxes) of any refunds and/or re-contributions and
any related documentation that you should maintain.

Re-contributions cannot be made to the CollegeAdvantage Guaranteed Plan. If you
wish to make a re-contribution, you must direct the re-contribution to an open
account in another qualified 529 plan.


IS PAYING OFF A STUDENT LOAN A QUALIFIED HIGHER EDUCATION EXPENSE?

A provision of the Further Consolidated Appropriations Act 2020 allows for 529
withdrawals to pay principal and interest on certain qualified education loans
for the beneficiary of your account or any of the beneficiary’s siblings. The
loan repayment provisions apply to repayments up to $10,000 per individual. This
$10,000 is a lifetime amount, not an annual limit. Withdrawals for student loan
repayment and/or apprenticeships can only be made to the Account Owner or the
Beneficiary.



WHAT IF MY BENEFICIARY DECIDES NOT TO GO TO COLLEGE?

CollegeAdvantage does not require a child to attend college immediately after
graduating high school. There are no age restrictions on when you can use your
account to pay for college expenses. You also have the option of changing the
beneficiary to another “member of the family”3 or taking a non-qualified
withdrawal.




HOW DO I ACCESS TAX FORMS AND OTHER ACCOUNT DOCUMENTS?

In addition to your 1099Q tax form, you can also download account statements and
confirmations of account activity online. Simply log in, and within two clicks,
you can select the documents you need. Watch this short video for all the
details.

View Transcript




FOOTNOTES: USING THE ASSETS IN MY COLLEGEADVANTAGE ACCOUNT

1 Earnings on non-qualified withdrawals are subject to federal income tax and
may be subject to a 10% federal penalty tax, as well as state and local income
taxes. The availability of tax or other benefits may be contingent on meeting
other requirements.

2 An eligible school is one that is eligible to participate in federal financial
aid programs.

3 Section 529 defines a family member as: a son, daughter, stepson or
stepdaughter, or a descendant of any such person; a brother, sister,
stepbrother, or stepsister; the father or mother, or an ancestor of either; a
stepfather or stepmother; a son or daughter of a brother or sister; a brother or
sister of the father or mother; a son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law; the spouse of the Beneficiary
or the spouse of any individual described above; or a first cousin of the
Beneficiary. Gift or generation-skipping transfer taxes may apply. Please
consult with your tax advisor for further information.


HOW DO I CLOSE MY ACCOUNT?

In order to close your Direct Plan Account with CollegeAdvantage, you must
liquidate/withdraw the remaining balance in the account you wish to close.  The
account must be at a zero balance in order to close your account.  There are two
means in which to close and liquidate your account:  1) complete the Direct
Withdrawal Request Form asking for 100% liquidation and to close the account or
2) via your online account access requesting 100% liquidation and to close your
account.  It is important that if you want the account closed that not only to
liquidate the entire balance, but to choose the close option as well. 
Otherwise, the account will remain open with a $0 balance.


UGIFT FAQS


WHAT IS UGIFT?

A service that lets Ohio’s 529 Plan account owners make it simple for others to
add to a student’s account. It’s used by millions of people nationwide.


WHAT’S A UGIFT CODE?

Every account in Ohio’s 529 Plan has a unique Ugift code. You can access yours
(1) on our website when you log in to your account and click “Share Ugift code”
or (2) when you sign in to the READYSAVE 529 App and select the Ugift icon at
the bottom of the start screen.


WHAT DO I DO WITH MY UGIFT CODE(S)?

Ugift codes are for sharing with family and friends who want to give the gift of
education


IS SHARING MY UGIFT CODE SAFE?

Absolutely. It’s a unique, one-way code that has nothing to do with your account
number. Money can go in with the code, but money and/or personal information
can’t go out.


CAN I EMAIL OR TEXT A UGIFT CODE?

Easily. From the website, right-click the code graphic and drop it in an email
or text. Whoever gets it can just click on the link and go straight to the Ugift
site: ugift529.com. From the READYSAVE 529 App, it’s even simpler — just follow
the prompts.


HOW ABOUT GIFT REGISTRIES — CAN I POST MY UGIFT CODE?

People love doing this. Share your code(s) and ugift529.com. Gift givers will
appreciate the simplicity and can even set up a Ugift account to make future
gifts.


WHAT HAPPENS WHEN SOMEONE GIVES US A GIFT?

If you’re the account owner, you’ll automatically be notified.


IS THERE A FEE FOR USING IT?

It’s free.


WHO OPERATES UGIFT?

Ugift is provided by Ascensus to participating 529 Plans all over the country.
Ascensus is a leading financial services firm in the 529 Plan universe and has
been an important partner to Ohio’s 529 Plan for many years.


close


INFO HUB

 * 529s At A Glance
 * Map Of Schools
 * Most Popular Investment Options
 * FAQs

--------------------------------------------------------------------------------


INTERACTIVE TOOLS

 * Calculate How Much To Save
 * 5-Decision Investment Selection Tool