“Pomp and Circumstance” swells as the sounds of rustling gowns and shuffling feet fill the air. The whole audience waits in eager anticipation with cameras at the ready. Suddenly you see them, with tassels swaying on their paper plate “mortar boards,” crossing the stage to receive their diplomas. They are moving up to…kindergarten! Overwhelmed with pride, you think, “Wow, she is growing up so fast.” And then you realize, “Wow, she’s growing up SO fast!”
Children really do grow up in the blink of an eye. By starting early, a college savings fund can grow with them. It’s easy too, with Ohio’s 529 Plan, CollegeAdvantage.
Why Use a 529 Plan?
529 plans are the tax-advantaged way to save for college with tax-free earnings and tax-free withdrawals for 529 qualified higher education expenses, those costs required to attend any federally accredited educational institutions — whether for a two-year, four-year, graduate or professional degree, or any other post-secondary credential. This list includes community colleges, vocational or trade schools, and graduate schools.
Ohio residents who save for their child’s higher education with Ohio’s 529 Plan, CollegeAdvantage, can deduct up to $4,000 from their Ohio taxable income per beneficiary, per year. Plus, you are allowed to contribute even more. Contributions over $4,000 are carried forward to future tax years, until all of your contributions are fully deducted. By planning ahead for future college costs, your 529 account can grow through the combination of compound interest, tax benefits, and regular contributions from not only you, but also your loved ones.
Ask Others for the Gift of a College Education
You probably weren’t alone as you watched your preschooler graduate. Family and friends will want to give meaningful gifts for this and other important milestones in your child’s life. You can invite them to contribute to your child’s CollegeAdvantage. It’s easy to arrange with Ohio’s 529 Plan. Log into your CollegeAdvantage Direct Plan and click on Ugift to request a unique code, which will authorize gift givers to donate directly to the plan without needing the actual account number. If the gift giver is an Ohioan, they can deduct their contributions from their Ohio taxable income. The gift just needs to be made payable directly to the 529 account, not to the child.
Disappearing Expenses can Become 529 Contributions
With your child heading to kindergarten, consider adding the money from disappearing expenses, like preschool, to your child’s CollegeAdvantage account. Disappearing expenses are those costs that are in your budget for a limited time — with preschool and daycare being some of the largest. Once your child enters kindergarten, turn those dollars into regular contributions to your Ohio’s 529 account. You won’t miss it and you will continue to support your child’s educational needs.
College Savings Giveaway
To help give the gift of a higher education during the graduation season, Ohio’s 529 Plan is giving away a $529 college savings award Entries will be accepted through 11:59 p.m. EST on June 10.
As you know, your children go from preschool to college fast! Your college savings can grow with them by using Ohio’s 529 Plan. If you are ready to start saving with CollegeAdvantage, it’s easy to open an account online today. Ohio’s 529 Plan, CollegeAdvantage, is your plan, your way.
— Submitted by Ohio’s 529 Plan, CollegeAdvantage. For more information, visit collegeadvantage.com or call 800-233-6734.