Ohio 529 Plan FAQ | General and Tax Questions

<!DOCTYPE html>    <html class="gt-ie9" lang="en"> <head> <meta charset="utf-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0" /> <meta http-equiv="X-UA-Compatible" content="IE=edge,chrome=1" /> <title> Ohio 529 Plan FAQ | General and Tax Questions | CollegeAdvantage </title> <script type="text/javascript" src="/content/scripts/vendor/modernizr.min.js"></script> <script src="/ScriptResource.axd?d=wIuRaUoAZ6lXIF1Yn5fO2Ao5M-lVxhGA_H5go8kEqmrG8bTKbUCbsqijAWSlIwpTSvC9JCMT0-biN_xZBaJCrNTFcq6MbvQFpsW7HSPZ6DVfTOYsKE2x2MrgFNNGgUAB5B9yMRmY7JzwqI-5ApywPL75TazGhn7drbAAWXlEXOdRf7p_0&t=28b41678" type="text/javascript"></script><script src="/ScriptResource.axd?d=EydukmxBmDstn7gSYzQESJg4MAIC2q4nqHSm_JPPf7EkIGRJ-pcdQfHnhr8v-R89ycIYWuGlvty_TmGv2bT6xiH89X6pAvDycg__N1vYyPOmRui6Ql2YSc3VoNxHbOxCquBGE8piVCLvIFhuGxClnNZBoRiHoJHZL0af2NxQIji6MNfM0&t=28b41678" type="text/javascript"></script> <script src="/Content/_source/vendor/bootstrap/js/bootstrap.bundle.min.js"></script> <script src="/Content/Scripts/userScore-tracking.js"></script> <link rel="mask-icon" href="/content/images/safari-pinned-tab.svg" color="white"> <link rel="apple-touch-icon" sizes="180x180" href="/content/images/apple-touch-icon.png"> <link rel="icon" type="image/png" sizes="256x256" href="/content/images/android-chrome-256x256.png"> <link rel="icon" type="image/png" sizes="192x192" href="/content/images/android-chrome-192x192.png"> <link rel="icon" type="image/png" sizes="32x32" href="/content/images/favicon-32x32.png"> <link rel="icon" type="image/png" sizes="16x16" href="/content/images/favicon-16x16.png"> <link rel="shortcut icon" href="/content/images/favicon.ico" type="image/x-icon" /> <link rel="manifest" href="/site.webmanifest"> <meta name="msapplication-TileColor" content="#ffffff"> <meta name="msapplication-TileImage" content="/content/images/mstile-150x150.png"> <meta name="theme-color" content="#ffffff"> <link rel="stylesheet" href="https://use.typekit.net/zru7qdk.css"> <link href="https://fonts.googleapis.com/css2?family=Lato&display=swap" rel="stylesheet"> <link href="/Content/Scripts/vendor/videojs/video-js.min.css" rel="stylesheet" /> <link rel="stylesheet" href="/content/styles/main.min.css" />   <script> !function (f, b, e, v, n, t, s) { if (f.fbq) return; n = f.fbq = function () { n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments) }; if (!f._fbq) f._fbq = n; n.push = n; n.loaded = !0; n.version = '2.0'; n.queue = []; t = b.createElement(e); t.async = !0; t.src = v; s = b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t, s) }(window, document, 'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '336452470148478'); fbq('track', 'PageView'); fbq('track', 'CompleteRegistration'); </script>   <script> (function (w, d, s, l, i) { w[l] = w[l] || []; w[l].push({ 'gtm.start': new Date().getTime(), event: 'gtm.js' }); var f = d.getElementsByTagName(s)[0], j = d.createElement(s), dl = l != 'dataLayer' ? '&l=' + l : ''; j.async = true; j.src = 'https://www.googletagmanager.com/gtm.js?id=' + i + dl; f.parentNode.insertBefore(j, f); })(window, document, 'script', 'dataLayer', 'GTM-T2QLZS');</script>  <meta property="og:title" content="Ohio 529 Plan FAQ | General and Tax Questions | CollegeAdvantage" /><meta property="og:description" content="Do you have questions about Ohio’s 529 Plan? CollegeAdvantage has the answers! View our FAQ list to learn about opening, managing and benefiting from this college savings program. " /><meta property="og:url" content="https://www.collegeadvantage.com/general-faqs" /><meta property="og:type" content="website" /><meta property="og:site_name" content="Ohio 529 Plan | CollegeAdvantage" /><style type="text/css" media="all">@media screen and (max-width: 575.98px) { footer#siteFooter .four-col section:last-child img { width: 160px; } } @supports (-webkit-touch-callout: none) { button.toggler-mobile svg { margin-left: -5px; } } img.main_logo_img { width: 195px; margin-bottom: 2px; } @media screen and (max-width: 991px) { img.main_logo_img { width: 210px; padding-left: 50px; } } @media screen and (max-width: 576px) { img.main_logo_img { width: 210px; } }</style><style type="text/css" media="all">/*Styles for view transcript link*/ #how-do-i-access-tax-forms-and-other-account-documents .two-col--66 .two-col__smaller{font-size:15px;text-align:right}#how-do-i-access-tax-forms-and-other-account-documents .two-col--66 .two-col__smaller p{margin:0}</style><meta name="Generator" content="Sitefinity 13.2.7521.0 OME" /><link rel="canonical" href="https://www.collegeadvantage.com/general-faqs" /><meta name="description" content="Do you have questions about Ohio’s 529 Plan? CollegeAdvantage has the answers! View our FAQ list to learn about opening, managing and benefiting from this college savings program. " /><meta name="keywords" content="529 faq, 529 plan faq, 529 account rules, common, answers, plan questions, 529 plans, 529 FAQs, 529 plan FAQs, 529 plan, Statement, Statements, 1099, 1099Q, Confirmation, Confirmations" /></head> <body>  <noscript> <img height="1" width="1" src="https://www.facebook.com/tr?id=336452470148478&ev=PageView&noscript=1" /> </noscript>   <noscript> <iframe src="https://www.googletagmanager.com/ns.html?id=GTM-T2QLZS" height="0" width="0" style="display: none; visibility: hidden"></iframe> </noscript>   <header id="siteHeader"> <noscript> <p class="alert alert-danger text-center">This site performs best with JavaScript enabled.</p> </noscript> <a href="#maincontent" class="skip-main">Skip Navigation</a> <div class="container pr-0"> <div class="row justify-content-between flex-nowrap"> <div class="pt-lg-1 pt-0 text-nowrap brand-name d-flex align-items-center ml-4 ml-sm-0"> <div > <div class="sfContentBlock sf-Long-text" ><a style="margin-bottom:5px;" href="/"><img src="/images/default-source/svg-icons/logos/ohio-agency-logo-odhe-529-horz-rgb_v2.svg?sfvrsn=96077f69_2" alt="Ohio's 529 CollegeAdvantage logo" class="main_logo_img" title="Ohio's 529 CollegeAdvantage logo" data-displaymode="Original" /></a> <h2>College Advantage - Ohio's 529 Savings Program</h2></div> </div> </div> <div class="col"> <div class="hamburger"> <div class="hamburger-box"> <div class="hamburger-inner"></div> </div> </div> <div class="right desktop"> <nav class="header__subnav header__subnav--top"> <ul> <li class="nav-item"> <a class="nav-link" href="/calculators-and-tools" target="_self">Tools</a> </li> <li class="nav-item"> <a class="nav-link" href="/offering-statement" target="_self">Offering Statement</a> </li> <li class="nav-item"> <a class="nav-link" href="/manage/forms" target="_self">Forms</a> </li> <li class="nav-item"> <a class="nav-link" href="/fees-and-facts" target="_self">Fees, Performance & Price History</a> </li> <li class="nav-item"> <a class="nav-link" href="/blog" target="_self">529 Explorer</a> </li> </ul> </nav> <nav class="header__subnav header__subnav--middle"> <ul> <li class="nav-item"> <a class="nav-link" href="/529s-in-29-seconds" target="_self">529s in 29 Seconds</a> </li> <li class="nav-item"> <a class="nav-link" href="/529-gift-central" target="_self">529 Gift Central</a> </li> <li class="nav-item"> <a class="nav-link" href="/request-a-kit" target="_self">Request a CollegeAdvantage Kit</a> </li> <li class="nav-item account-link"> <a class="nav-link" href="/account-login" target="_self">Account Login</a> </li> </ul> </nav> </div> </div> </div> </div> <nav id="siteNav"> <div class="container px-0"> <div class="main-nav-container"> <ul> <li class=" main-nav-link"> <a href="/learn" target="_self" title="Learn">Learn</a> </li> <li class=" main-nav-link"> <a href="/plan" target="_self" title="Plan">Plan</a> </li> <li class=" main-nav-link"> <a href="/start" target="_self" title="Start">Start</a> </li> <li class=" main-nav-link"> <a href="/manage" target="_self" title="Manage">Manage</a> </li> <li class=" last-nav-link main-nav-link"> <a href="/plan/open-an-account" target="_self" title="Open An Account">Open An Account</a> </li> <li class=" mobile-link account-link main-nav-link"> <a href="/account-login" target="_self" title="Account Login">Account Login</a> </li> <li class="mobile-trigger"> <div class="hamburger"> <div class="hamburger-box"> <div class="hamburger-inner"></div> </div> </div> </li> </ul> <div class="search-container"> <div class="input-group"> <label for="search" class="visuallyhidden">Search Textbox</label> <input type="text" class="form-control" name="search" placeholder="Search" aria-label="Search"> <div class="input-group-append"> <button class="btn" type="button"> <img src="/Content/Images/icons-icon-search.svg" alt="search icon" /> </button> </div> </div> </div> </div> <nav class="nav-collapse"> <ul> <li> <div class="input-group"> <input type="text" class="form-control" name="search" placeholder="Search"> <div class="input-group-append"> <button class="btn" type="button"> <img src="/Content/Images/icons-icon-search.svg" /> </button> </div> </div> </li> <li> <div class="submenu-parent"> <a href="/learn" target="_self" title="Learn" onclick="checkLinkDestination(this)"> <img src="/Content/Images/icons-icon-learn-home.svg" /> Learn </a> <button></button> </div> <div class="submenu"> <ul> <li> <a href="https://www.collegeadvantage.com/Learn#accordion1" target="_self" title="More savings equals less debt equals more options in life." onclick="checkLinkDestination(this)"> More savings equals less debt equals more options in life. </a> </li> <li> <a href="https://www.collegeadvantage.com/Learn#accordion2" target="_self" title="Comparing bank accounts with 529 Plans - plus all the other ways to save." onclick="checkLinkDestination(this)"> Comparing bank accounts with 529 Plans - plus all the other ways to save. </a> </li> <li> <a href="https://www.collegeadvantage.com/Learn#accordion3" target="_self" title="Get the facts about Ohio’s 529 Plan starting with where you can use it." onclick="checkLinkDestination(this)"> Get the facts about Ohio’s 529 Plan starting with where you can use it. </a> </li> <li> <a href="https://www.collegeadvantage.com/Learn#accordion4" target="_self" title="How grandparents and other family members can help save for college." onclick="checkLinkDestination(this)"> How grandparents and other family members can help save for college. </a> </li> <li> <a href="https://www.collegeadvantage.com/Learn#accordion5" target="_self" title="When families typically start and add to their college savings." onclick="checkLinkDestination(this)"> When families typically start and add to their college savings. </a> </li> </ul> </div> </li> <li> <div class="submenu-parent"> <a href="/plan" target="_self" title="Plan" onclick="checkLinkDestination(this)"> <img src="/Content/Images/icons-icon-plan-home.svg" /> Plan </a> <button></button> </div> <div class="submenu"> <ul> <li> <a href="https://www.collegeadvantage.com/plan#accordion1" target="_self" title="What kind of school are you thinking?" onclick="checkLinkDestination(this)"> What kind of school are you thinking? </a> </li> <li> <a href="https://www.collegeadvantage.com/plan#accordion2" target="_self" title="What do you want your savings to cover?" onclick="checkLinkDestination(this)"> What do you want your savings to cover? </a> </li> <li> <a href="https://www.collegeadvantage.com/plan#accordion3" target="_self" title="How much are you going to save?" onclick="checkLinkDestination(this)"> How much are you going to save? </a> </li> <li> <a href="https://www.collegeadvantage.com/plan#accordion4" target="_self" title="What kind of risk/reward do you want?" onclick="checkLinkDestination(this)"> What kind of risk/reward do you want? </a> </li> <li> <a href="https://www.collegeadvantage.com/plan#accordion5" target="_self" title="Choose your 529 Plan investment(s)." onclick="checkLinkDestination(this)"> Choose your 529 Plan investment(s). </a> </li> </ul> </div> </li> <li> <div class="submenu-parent"> <a href="/start" target="_self" title="Start" onclick="checkLinkDestination(this)"> <img src="/Content/Images/icons-icon-start-home.svg" /> Start </a> <button></button> </div> <div class="submenu"> <ul> <li> <a href="https://www.collegeadvantage.com/start#accordion1" target="_self" title="Open an account" onclick="checkLinkDestination(this)"> Open an account </a> </li> <li> <a href="/account-login" target="_self" title="Add to my existing account" onclick="checkLinkDestination(this)"> Add to my existing account </a> </li> <li> <a href="https://www.collegeadvantage.com/start#accordion2" target="_self" title="Add to someone else's existing account" onclick="checkLinkDestination(this)"> Add to someone else's existing account </a> </li> <li> <a href="https://www.mycollegeadvantagedirect.com/ohtpl/uii529enroll/peLanding.do?vgs=true" target="_blank" title="Open my saved or pre-filled account application" onclick="checkLinkDestination(this)"> Open my saved or pre-filled account application </a> </li> </ul> </div> </li> <li> <div class="submenu-parent"> <a href="/manage" target="_self" title="Manage" onclick="checkLinkDestination(this)"> <img src="/Content/Images/icons-icon-manage-home.svg" /> Manage </a> <button></button> </div> <div class="submenu"> <ul> <li> <a href="https://www.collegeadvantage.com/manage#accordion1" target="_self" title="Busy life? Set up your account to build itself." onclick="checkLinkDestination(this)"> Busy life? Set up your account to build itself. </a> </li> <li> <a href="https://www.collegeadvantage.com/manage#accordion2" target="_self" title="Have U shared your Ugift code with family and friends?" onclick="checkLinkDestination(this)"> Have U shared your Ugift code with family and friends? </a> </li> <li> <a href="https://www.collegeadvantage.com/manage#accordion3" target="_self" title="Here’s a to-do list for account owners." onclick="checkLinkDestination(this)"> Here’s a to-do list for account owners. </a> </li> <li> <a href="https://www.collegeadvantage.com/manage#accordion4" target="_self" title="Want to see your other investment options?" onclick="checkLinkDestination(this)"> Want to see your other investment options? </a> </li> <li> <a href="https://www.collegeadvantage.com/manage#accordion5" target="_self" title="Here’s what you should think about at each key stage." onclick="checkLinkDestination(this)"> Here’s what you should think about at each key stage. </a> </li> <li> <a href="https://www.collegeadvantage.com/cas/login.aspx" target="_blank" title="Resources for guaranteed plan participants." onclick="checkLinkDestination(this)"> Resources for guaranteed plan participants. </a> </li> </ul> </div> </li> </ul> </nav> <script> function checkLinkDestination(el) { if (el.href.includes('#') && el.href.includes(window.location.pathname)) { $('.open[data-toggle="collapse-next"]').trigger('click'); var hash = el.href.split("#")[1]; var accNum = parseInt(hash.substring(9)) - 1; setTimeout(function () { $(".hamburger").click(); }, 500); } } </script> <div class="mobile-nav-footer"> <ul class="mb-3"> <li class="py-2"><a href="/529s-in-29-seconds" target="_self" title="529s in 29 Seconds">529s in 29 Seconds</a></li> <li class="py-2"><a href="/blog" target="_self" title="529 Explorer">529 Explorer</a></li> <li class="py-2"><a href="/529-gift-central" target="_self" title="529 Gift Central">529 Gift Central</a></li> <li class="py-2"><a href="/plan/request-a-kit" target="_self" title="Request A CollegeAdvantage Kit">Request A CollegeAdvantage Kit</a></li> <li class="py-2"><a href="/about-us" target="_self" title="About Us">About Us</a></li> </ul> <ul class="d-flex justify-content-around border-top py-2 text-center"> <li class="p-sm-2 p-1"><a href="/contact-us" target="_self" title="Contact Us">Contact Us</a></li> <li class="p-sm-2 p-1"><a href="/privacy-notice" target="_self" title="Privacy Notice">Privacy Notice</a></li> <li class="p-sm-2 p-1"><a href="/legal" target="_self" title="Legal">Legal</a></li> </ul> </div> </div> </nav> </header> <main id="content"> <div class="container" id="maincontent"> <div> <nav class="breadcrumb" aria-label="Full path to the current page"> <ul> <li><a href="/">Home</a></li> <li class="active" aria-current="page">General FAQs</li> </ul> </nav> </div> <h1 class="heading--1 color--blue1">Frequently Asked Questions About CollegeAdvantage</h1> <p>You're not alone when it comes to questions about college savings. We've gathered everything you need to know about opening, managing, and benefiting from your CollegeAdvantage 529 account.</p> <h2 class="heading--3 color--blue1">General FAQs</h2> <div class="accordion-info accordion-info--alt"> <ul class=""> <li class="accordion" id="what-is-collegeadvantage"> <a class="icon-arrow-right" tabindex="0">What is CollegeAdvantage?</a> <div> <div class="padding-std">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,<sup>1</sup> 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.<br /></div> </div> </li> <li class="accordion" id="how-does-collegeadvantage-work"> <a class="icon-arrow-right" tabindex="0">How does CollegeAdvantage work?</a> <div> <div class="padding-std">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.<br /> <br /></div> </div> </li> <li class="accordion" id="how-do-i-open-a-collegeadvantage-account"> <a class="icon-arrow-right" tabindex="0">How do I open a CollegeAdvantage account?</a> <div> <div class="padding-std">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.<br><br></div> </div> </li> <li class="accordion" id="how-much-do-i-need-to-open-an-account"> <a class="icon-arrow-right" tabindex="0">How much do I need to open an account?</a> <div> <div class="padding-std">CollegeAdvantage offers low initial and subsequent minimum contributions of as little as $25. The Fifth Third Certificate of Deposit requires a $500 minimum contribution.</div> </div> </li> <li class="accordion" id="who-can-open-a-collegeadvantage-account"> <a class="icon-arrow-right" tabindex="0">Who can open a CollegeAdvantage account?</a> <div> <div class="padding-std">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.<br /></div> </div> </li> <li class="accordion" id="who-can-contribute-to-a-529"> <a class="icon-arrow-right" tabindex="0">Who can contribute to a 529?</a> <div> <div class="padding-std">Anyone<sup>2</sup> 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.<br /></div> </div> </li> <li class="accordion" id="who-can-be-a-beneficiary"> <a class="icon-arrow-right" tabindex="0">Who can be a beneficiary?</a> <div> <div class="padding-std">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.<br /></div> </div> </li> <li class="accordion" id="does-my-beneficiary-have-to-attend-college-in-ohio"> <a class="icon-arrow-right" tabindex="0">Does my beneficiary have to attend college in Ohio?</a> <div> <div class="padding-std">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 <a href="https://www.fafsa.gov" target="_blank" class="external">www.fafsa.gov</a>.</div> </div> </li> <li class="accordion" id="what-if-my-beneficiary-does-not-go-to-college-immediately-after-high-school"> <a class="icon-arrow-right" tabindex="0">What if my beneficiary does not go to college immediately after high school?</a> <div> <div class="padding-std">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.<br /></div> </div> </li> <li class="accordion" id="are-investments-in-collegeadvantage-guaranteed"> <a class="icon-arrow-right" tabindex="0">Are investments in CollegeAdvantage guaranteed?</a> <div> <div class="padding-std">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.<br /></div> </div> </li> <li class="accordion" id="what-is-ugift"> <a class="icon-arrow-right" tabindex="0">What is Ugift®?</a> <div> <div class="padding-std">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.<br /></div> </div> </li> <li class="accordion" id="what-is-upromise-and-how-can-it-help-me-save-for-college"> <a class="icon-arrow-right" tabindex="0">What is Upromise® and how can it help me save for college?</a> <div> <div class="padding-std"><img alt="Upromise" src="https://www.collegeadvantage.com/images/default-source/default-album/upromise_logo_348pxwx72pxh.png?Status=Master&sfvrsn=e932337a_1" sf-size="100" /><strong><br /><br />Boost your college savings with Upromise</strong><strong><sup>®</sup></strong> <br /><br />Upromise<sup>®</sup> 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.<br /><br /><a href="https://www.upromise.com/?cmp=2321&cxid-OH&aff_sid=CollegeAdvantage" target="_blank">Join</a> Upromise for free today:<br /><ul><li>Earn <strong>$5.29</strong> in bonus rewards when you <strong>open</strong> a new Upromise account.</li><li>Earn an additional <strong>$25</strong> in bonus rewards when you<strong> link</strong> your first Ohio's 529 Plan account to your new Upromise account.</li><li>Earn additional rewards continuously by <strong>shopping</strong> online through Upromise.com and <strong>dining</strong> at over 10,000 restaurants nationwide.  </li><li>You’re automatically entered into the monthly Upromise 529 Scholarship drawing of five $529 scholarships.</li></ul>Learn more at <a href="https://www.upromise.com/?cmp=2321&cxid-OH&aff_sid=CollegeAdvantage" target="_blank">Upromise.com</a>. It’s fast, easy, and secure.<br /><br /><em>Disclosure<br /><br />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.<br /><br />Upromise and the Upromise logo are registered service marks of Upromise, LLC.</em> <br /></div> </div> </li> <li class="accordion" id="what-impact-does-a-529-plan-have-on-eligibility-for-federal-financial-aid"> <a class="icon-arrow-right" tabindex="0">What impact does a 529 plan have on eligibility for federal financial aid?</a> <div> <div class="padding-std">529 plan assets are counted at different rates for the Expected Family Contribution (EFC) in the FAFSA formula. Current federal guidelines are as follows: <br /> <br /> 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. <br /> <br /> 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%. <br /> <br /> 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. <br /> <br /> 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.</div> </div> </li> <li class="accordion" id="footnotes-general"> <a class="icon-arrow-right" tabindex="0">Footnotes: General</a> <div> <div class="padding-std"><sup>1</sup> 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. <br /> <sup><br /> 2 </sup>If you contribute to an account owned by someone else, you give up all rights to the money contributed to that account.</div> </div> </li> </ul> </div> <h2 class="heading--3 color--blue1 margin-verticals-2x">Tax FAQs</h2> <div class="accordion-info accordion-info--alt"> <ul class=""> <li class="accordion" id="how-do-i-access-tax-forms-and-other-account-documents"> <a class="icon-arrow-right" tabindex="0">How do I access tax forms and other account documents?</a> <div> <div class="padding-std"><p>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.</p> <div style="max-width:574px;margin:0 auto;"><iframe src="//fast.wistia.net/embed/iframe/xbuwh7gwof?videoFoam=true" allowtransparency="true" frameborder="0" scrolling="no" class="wistia_embed" name="wistia_embed" width="574" height="323" allow="fullscreen" style="width:574px;height:323px;border:0;"></iframe><a href="https://www.collegeadvantage.com/docs/default-source/video-transcripts/tax-forms.txt?sfvrsn=9a1d8134_2" target="_blank" style="color:#0a75b2;"><small>View Transcript</small></a> </div></div> </div> </li> <li class="accordion" id="what-tax-benefits-can-i-get-from-collegeadvantage"> <a class="icon-arrow-right" tabindex="0">What tax benefits can I get from CollegeAdvantage?</a> <div> <div class="padding-std">Earnings grow tax free from federal and state income tax when used for qualified higher education expenses.<sup>1</sup> 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.<br /></div> </div> </li> <li class="accordion" id="are-there-any-special-tax-benefits-for-ohio-taxpayers"> <a class="icon-arrow-right" tabindex="0">Are there any special tax benefits for Ohio taxpayers?</a> <div> <div class="padding-std">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.<br /></div> </div> </li> <li class="accordion" id="what-are-the-plans-gift--and-estate-tax-benefits"> <a class="icon-arrow-right" tabindex="0">What are the Plan's gift- and estate-tax benefits?</a> <div> <div class="padding-std">Per federal 529 laws, individuals can invest up to $18,000 ($36,000 for married couples) per beneficiary without incurring any federal gift-tax consequences. You can also contribute up to $90,000 per beneficiary in a single year ($180,000 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,<sup>2</sup> 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.<br /></div> </div> </li> <li class="accordion" id="footnotes-taxes"> <a class="icon-arrow-right" tabindex="0">Footnotes: Taxes</a> <div> <div class="padding-std"><sup>1 </sup>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. <br /> <br /> <sup>2 </sup>In the event the donor does not survive the five-year period, a pro-rated amount will revert to the donor's taxable estate.</div> </div> </li> </ul> </div> <div class="margin-top-4x"> <p class="left--reset margin-right-5x overflow-hidden bigger"> <em class="color--red klinic">Already have an account? <br>See account FAQs for questions about your assets</em> </p> <a href="/current-account-holders/account-faqs" class="button button--long alt-color3 margin-bottom-2x">See Account FAQs</a> </div> </div> </main> <footer id="siteFooter"> <div class="container"> <div class="four-col"> <section> <div > <div class="sfContentBlock sf-Long-text" ><p>Information for:</p></div> </div> <nav> <ul class="nav flex-column"> <li class="nav-item"> <a class="nav-link " href="/employers" target="_self" title="Employers">Employers</a> </li> <li class="nav-item"> <a class="nav-link " href="/financial-advisors" target="_self" title="Financial Advisors">Financial Advisors</a> </li> <li class="nav-item"> <a class="nav-link " href="/non-profit-organizations" target="_self" title="Non-Profit Organizations">Non-Profit Organizations</a> </li> </ul> </nav> </section> <section> <div > <div class="sfContentBlock sf-Long-text" ><p>Quick links to:</p></div> </div> <nav> <ul class="nav flex-column"> <li class="nav-item"> <a class="nav-link " href="/start/open-an-account" target="_self" title="Open a Direct 529 Account">Open a Direct 529 Account</a> </li> <li class="nav-item"> <a class="nav-link " href="/blog" target="_self" title="529 Explorer">529 Explorer</a> </li> <li class="nav-item"> <a class="nav-link " href="/manage/forms" target="_self" title="Forms">Forms</a> </li> <li class="nav-item"> <a class="nav-link " href="/guaranteed-plan-resources" target="_self" title="Guaranteed Plan Resources">Guaranteed Plan Resources</a> </li> <li class="nav-item"> <a class="nav-link external " href="https://www.blackrock.com/us/individual/products/529-college-savings-plans/collegeadvantage-529-plan" target="_blank" title="Blackrock CollegeAdvantage">Blackrock CollegeAdvantage</a> </li> <li class="nav-item"> <a class="nav-link " href="/calculators-and-tools" target="_self" title="Calculators & Tools">Calculators & Tools</a> </li> <li class="nav-item"> <a class="nav-link " href="/fees-and-facts#accordion1" target="_self" title="Fees and Expenses">Fees and Expenses</a> </li> <li class="nav-item"> <a class="nav-link active" href="/general-faqs" target="_self" title="General FAQs">General FAQs</a> </li> <li class="nav-item"> <a class="nav-link " href="https://www.collegeadvantage.com/docs/default-source/stand-alone-documents/regional_rep_handout_-sources-of-information_1-2015.pdf" target="_self" title="College Planning Resources">College Planning Resources</a> </li> <li class="nav-item"> <a class="nav-link external " href="https://www.ugift529.com/" target="_blank" title="UGift529.com">UGift529.com</a> </li> <li class="nav-item"> <a class="nav-link external " href="https://www.upromise.com/?cmp=2321&cxid-OH&aff_sid=CollegeAdvantage" target="_blank" title="Upromise">Upromise</a> </li> </ul> </nav> </section> <section> <div > <div class="sfContentBlock sf-Long-text" ><p>Ohio Tuition Trust Authority</p></div> </div> <nav> <ul class="nav flex-column"> <li class="nav-item"> <a class="nav-link " href="/about-us" target="_self" title="About Us">About Us</a> </li> <li class="nav-item"> <a class="nav-link " href="/contact-us" target="_self" title="Contact Us">Contact Us</a> </li> <li class="nav-item"> <a class="nav-link " href="/privacy-notice" target="_self" title="Privacy Notice">Privacy Notice</a> </li> <li class="nav-item"> <a class="nav-link " href="/accessibility-policy" target="_self" title="Accessibility Policy">Accessibility Policy</a> </li> <li class="nav-item"> <a class="nav-link " href="https://www.collegeadvantage.com/docs/default-source/stand-alone-documents/disability-inclusion-access-poster.pdf?sfvrsn=8ebb7017_2" target="_self" title="Disability Inclusion Access">Disability Inclusion Access</a> </li> <li class="nav-item"> <a class="nav-link " href="/legal-disclosures" target="_self" title="Legal Disclosures">Legal Disclosures</a> </li> <li class="nav-item"> <a class="nav-link " href="/sitemap" target="_self" title="Sitemap">Sitemap</a> </li> </ul> </nav> </section> <section> <ul class="social"> <li><a href="https://www.facebook.com/collegeadvantage" class="social__link icon-facebook" target="_blank">CollegeAdvantage On Facebook</a></li> <li><a href="https://twitter.com/Ohio529plan" class="social__link icon-twitter" target="_blank">CollegeAdvantage On Twitter</a></li> <li><a href="https://www.linkedin.com/company/ohio-tuition-trust-authority" class="social__link icon-linkedin" target="_blank">CollegeAdvantage On LinkedIn</a></li> <li><a href="https://www.youtube.com/user/CollegeAdvantage" class="social__link icon-youtube" target="_blank">CollegeAdvantage On YouTube</a></li> </ul> <div > <div class="sfContentBlock sf-Long-text" ><p><a href="/home"><img src="/images/default-source/svg-icons/logos/ohio-agency-logo-odhe-529-horz-rgb_v2.svg?sfvrsn=96077f69_2" alt="Ohio's 529 CollegeAdvantage logo" title="Ohio's 529 CollegeAdvantage logo" data-displaymode="Original" width="160" /></a></p><p><br />Before investing, read the <a href="/legal-disclosures" style="text-decoration:underline;color:#39324e;">Disclosures</a> and the <br /><a href="https://www.collegeadvantage.com/offering-statement" style="text-decoration:underline;color:#39324e;">Direct Plan Offering Statement<br /><br /></a></p><p><img src="/images/default-source/default-album/ohio-agency-logo-odhe-tuitiontrust-horz-rgb_v3.png?sfvrsn=5c830ec8_6" alt="Ohio Tuition Trust Authority Logo" title="Ohio Tuition Trust Authority" data-displaymode="Original" width="160" /><br /></p><p>© Ohio Tuition Trust Authority.<br />All rights reserved.<br /></p></div> </div> </section> </div> </div> </footer> <a id="back-to-top"><span>Back To Top</span></a> <div class="modal_global" role="dialog" id="modal" tabindex="-1" aria-modal="true"> <div class="modal__bg"></div> <div class="modal__main"> <div id="modal-close" tabindex="0" class="modal__close"><a tabindex="0" role="button">×</a></div> <div class="modal__content"> </div> </div> </div> <input id="submitContext" type="hidden" name="submitContext" /> <script type="text/javascript"> /* PIXEL OR-460 */ adroll_adv_id = "LE2NX5JSZVAB5F2OGOLI5O"; adroll_pix_id = "3M3R7KQIRRA3ZAPCGLM7L3"; /* OPTIONAL: provide email to improve user identification */ /* adroll_email = "username@example.com"; */ (function () { var _onload = function () { if (document.readyState && !/loaded|complete/.test(document.readyState)) { setTimeout(_onload, 10); return } if (!window._adroll_loaded) { _adroll_loaded = true; setTimeout(_onload, 50); return } var scr = document.createElement("script"); var host = (("https:" == document.location.protocol) ? "https://s.adroll.com" : "http://a.adroll.com"); scr.setAttribute('async', 'true'); scr.type = "text/javascript"; scr.src = host + "/j/roundtrip.js"; ((document.getElementsByTagName('head') || [null])[0] || document.getElementsByTagName('script')[0].parentNode).appendChild(scr); }; if (window.addEventListener) { window.addEventListener('load', _onload, false); } else { window.attachEvent('onload', _onload) } }()); </script> <script src="/ScriptResource.axd?d=bfAXLh37c8C28xGfov1QYUi4n_3omH8I82Ym1hpqOfmVXqsHcNIbkWgr_hGZRfODAAYNg3bfQhQbeJbz5ne8dBSP8NfrKUwEVpfrYnPBRK6TuDAOPrnyxnqQOgpRw-c8gIqXnnoV8PHpNccvE7y1rIn7MKQcNKZMQj0XLXUJWFhj3iqZ0&t=28b41678" type="text/javascript"></script> <script src="/content/scripts/ga.min.js"></script> <script src="/content/scripts/vendor/jquery.placeholder.min.js"></script> <script src="/content/scripts/vendor/jRespond.min.js"></script> <script src="/content/scripts/vendor/mustache.min.js"></script> <script src="/content/scripts/vendor/matchHeight.min.js"></script> <script src="/content/scripts/vendor/jquery.scrollstop.min.js"></script> <script src="/content/scripts/vendor/jquery.sticky.min.js"></script> <script src="/content/scripts/vendor/responsive-nav.min.js"></script> <script src="/content/scripts/vendor/fstdropdown/fstdropdown.min.js"></script> <script src="/content/scripts/vendor/rangeslider/rangeslider.min.js"></script> <script src="/content/scripts/vendor/chartjs/chart.min.js"></script> <script src="/content/scripts/vendor/chartjs/chartjs-adapter-date-fns.bundle.min.js"></script> <script src="/Content/scripts/vendor/dotdotdot.min.js"></script> <script src="/Content/scripts/vendor/videojs/video.min.js"></script> <script src="/content/scripts/vendor/cycle2/jquery.cycle2.min.js"></script> <script src="/content/scripts/vendor/cycle2/jquery.cycle2.carousel.min.js"></script> <script src="/content/scripts/vendor/cycle2/jquery.cycle2.swipe.min.js"></script> <script src="/Content/scripts/form-validation.min.js"></script> <script src="/content/scripts/main.min.js"></script> <script src="/content/scripts/global.min.js"></script> <script src="/content/scripts/search.min.js"></script> <script src="/Content/scripts/vendor/select2/select2.full.min.js"></script> <script type="text/javascript" src="/WebResource.axd?d=NjxTqR2bqTw1rewxxlkHPnglRVHno9OvOP0iQ5gsEILJ39JKk_NFfwMYIMvKLYnN2ohXe1pkApwKtKIXSfJfyPk69T4V8ep_SAQiUGKGzsR6YBwzx0TFWek2A2-BiZMasASwsKQEYE798FS9upCXNK5bZc2XVorqjAw1OPddLnslpbm_nsJVR6L0ruw38CDN0eQs9gczzkNfU58TXfMA0xbgFHs1&t=638600038248722098"> </script> </body> </html> <script id="f5_cspm">(function(){var f5_cspm={f5_p:'HGJFDCOPDMHIMGIIIPEFCMAFMHDEBCFCAMKDOMOFMMNHKIJBPCJJIKHBBNMBEBKEKCNBFGBAAAHPGCIDNPNALKHOAAPLLGOKJFHJDMFHOGOIPIAGDANMOGOMINNNOINP',setCharAt:function(str,index,chr){if(index>str.length-1)return str;return str.substr(0,index)+chr+str.substr(index+1);},get_byte:function(str,i){var s=(i/16)|0;i=(i&15);s=s*32;return((str.charCodeAt(i+16+s)-65)<<4)|(str.charCodeAt(i+s)-65);},set_byte:function(str,i,b){var s=(i/16)|0;i=(i&15);s=s*32;str=f5_cspm.setCharAt(str,(i+16+s),String.fromCharCode((b>>4)+65));str=f5_cspm.setCharAt(str,(i+s),String.fromCharCode((b&15)+65));return str;},set_latency:function(str,latency){latency=latency&0xffff;str=f5_cspm.set_byte(str,40,(latency>>8));str=f5_cspm.set_byte(str,41,(latency&0xff));str=f5_cspm.set_byte(str,35,2);return str;},wait_perf_data:function(){try{var wp=window.performance.timing;if(wp.loadEventEnd>0){var res=wp.loadEventEnd-wp.navigationStart;if(res<60001){var cookie_val=f5_cspm.set_latency(f5_cspm.f5_p,res);window.document.cookie='f5avr0250104409aaaaaaaaaaaaaaaa_cspm_='+encodeURIComponent(cookie_val)+';path=/;'+'';} return;}} catch(err){return;} setTimeout(f5_cspm.wait_perf_data,100);return;},go:function(){var chunk=window.document.cookie.split(/\s*;\s*/);for(var i=0;i<chunk.length;++i){var pair=chunk[i].split(/\s*=\s*/);if(pair[0]=='f5_cspm'&&pair[1]=='1234') {var d=new Date();d.setTime(d.getTime()-1000);window.document.cookie='f5_cspm=;expires='+d.toUTCString()+';path=/;'+';';setTimeout(f5_cspm.wait_perf_data,100);}}}} f5_cspm.go();}());</script>

CINXE.COM

Ohio 529 Plan FAQ | General and Tax Questions | CollegeAdvantage