TAX-FREE WITHDRAWALS
The account grows tax-free. Withdrawals are free from federal and state income tax if used to pay for qualified higher education expenses.
STATE INCOME TAX DEDUCTIBILITY
Contributions to your state’s plan may be eligible for a total or partial deduction on your state income tax return.
REDUCED ESTATE TAX
Generally, the account value isn’t included in anyone’s estate for federal estate tax purposes. State estate taxability varies by state.
INVESTMENT FLEXIBILITY
Generally, you can choose between two types of investments: age-based options (investments change to a more conservative mix as your child nears college) and individual investments (you manage and create your strategy). You can change investments within the plan once each calendar year.
UNLIMITED PARTICIPATION
Under Ohio’s plan, anyone—parent, grandparent, or friend—can own an account or contribute to another’s account for a beneficiary. Some states’ plans allow only the account owner to contribute.
ABILITY TO CHANGE BENEFICIARY
You may transfer the account at any time to a different beneficiary who is an eligible family member of the original beneficiary.
MINIMUM IMPACT ON FEDERAL OR FINANCIAL AID
Funds invested in a 529 plan are considered to be an asset of the account owner. If the parent is the account owner, on average, about 5.64% of the value of the account is considered in determining federal financial aid.
NO INCOME RESTRICTIONS
You may invest in a 529 plan no matter how much you earn.
FLEXIBLE AGE LIMIT
Most plans allow contributions for a beneficiary of any age. Only a few plans have age restrictions.