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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
 * 

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 * 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


WELCOME TO OHIO’S TAX-FREE 529 DIRECT PLAN

This is the simple, flexible way to save for whatever school comes after high
school. This site is for do-it-yourself 529 Plan savers looking for the lowest
cost way to invest.


Learn more


GOT $25? GOT $25?
START SAVING.

SAVING A LITTLE CAN HELP A LOT:

 * Everything you save helps your kids or grandkids borrow less
 * Use for college, trade school, certificates, apprenticeships, and more
 * Most families don’t plan to cover all education costs (watch 29-second video)
 * Setting up an automatic investment plan keeps your account growing tax-free

Start Now

Learn more


WANT TO DO THIS SUPER FAST? WANT TO DO THIS SUPER FAST?

YOU CAN START WITHOUT A DEEP DIVE INTO FINANCIAL EDUCATION.

 1. Check out 529s at a glance for the basics
 2. Take a look at the most popular investment choices
 3. Check out “529s in 29 Seconds” or FAQs for questions

Start Now

Learn more


PAY K–12 PAY K–12
TUITION? YES.

PAY TUITION UP TO $10,000 PER STUDENT, PER YEAR.

 * Public, private, or religious elementary and secondary school tuition
 * Deduct up to $4,000 per student, per year from Ohio taxes
 * Tax-free when used for qualifying K–12 tuition

Start Now

Learn more


JUST FOR GRANDPARENTS JUST FOR GRAND-PARENTS

THE SMART WAY TO SAVE FOR GRANDKIDS IN ANY STATE:

 * Watch a 29-second video overview for grandparents
 * Explore more topics in the “529s in 29 seconds” video center
 * Read all about grandparent-owned accounts at our Learn page
 * Contribute to a 529 owned by the parents at our 529 Gift Central page

Start Now


SIGN UP FOR OUR E-NEWSLETTER

We’ll send you regular educational updates, program news, and promotions and we
will not share your information with third parties.

SIGN UP




WHO IS THE PLAN FOR?

Self
Child
Grandchild
Other
SUBMIT


THANK YOU FOR SIGNING UP TO RECEIVE NEWS AND INFORMATION FROM COLLEGEADVANTAGE.



Look for your first e-newsletter to arrive soon. To ensure delivery, be sure to
add email@CollegeAdvantageOutreach.com to your address book





View Transcript
With as little as $25, you can begin transforming your family’s future.
Even small regular deposits – as little as $25 – can grow into a significant
fund over time. What really matters is that you start as early as possible. And
when the time comes, the savings can be used for college, trade school,
certificate programs, K-12 schools, apprenticeships, over 30,000 schools
nationwide.
START NOW

Explore all the topics


OFFICE OF OHIO’S 529 PLAN CLOSED FOR THANKSGIVING


OHIO'S 529 PLAN SECURE SITE MAINTENANCE SET FOR NOV. 19




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

 * CollegeAdvantage On Facebook
 * CollegeAdvantage On Twitter
 * CollegeAdvantage On LinkedIn
 * CollegeAdvantage On YouTube

 

 

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

 

© Ohio Tuition Trust Authority.
All rights reserved.

 

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529S AT A GLANCE

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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


FREQUENTLY ASKED QUESTIONS ABOUT COLLEGEADVANTAGE

×


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.