Ohio 529 Plan Rules And College Savings Options
Ohio has a 529 plan called CollegeAdvantage that can help you save for college. Ohio also has a 529 Able Plan as well.
If you live in Ohio, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Ohio. Each state has different rules when it comes to 529 plan savings. Here are the Ohio 529 plan rules.
Average Cost Of College In Ohio
When saving for college in Ohio, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 280 colleges and universities in the State of Ohio.
The total average cost of college (Cost of Attendance) in Ohio for in-state residents is $20,790 for 2023. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $8,184 for 2023. The cost of tuition in Ohio has been rising at about 1% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Ohio 529 Plan Rules And Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in Ohio.
Contributions
Ohio offers a state tax deduction for contributions to a 529 plan of up to $4,000 per year for any filing status. Tax deductions can be carry-forward with no limit - allowing for super-funding.
Minimum: $25
Maximum: Accepts contributions until all account balances for the same beneficiary reach $517,000.
Rollovers
Rollovers into the state plan are considered for the tax deduction up to the limits specified above.
Outbound rollovers are subject to recapture of prior tax deductions.
Qualified Distributions
Qualified distributions from an Ohio and non-Ohio 529 plan are tax-free.
K-12 Education
Ohio does conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Student Loans
Ohio does conform with Federal law for using a 529 plan for student loans.
Rollover To Roth IRA
Ohio does allow the rollover to a Roth IRA up to $35,000. Learn more about the requirements to rollover a 529 plan to a Roth IRA here.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from an Ohio 529 plan is subject to taxes on the full amount to recapture any prior tax deductions received.
Ohio 529 College Savings Plan Options
Ohio has several 529 plan options - one consumer plan and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this). They also have an old pre-paid tuition program that is no longer taking new enrollment.
Alabama 529 Plan Facts
Alabama has the following currently invested in 529 plans in the state as of December 31, 2023:
529 Plan | Number Of Accounts | Total Assets | Average Account Balance |
|---|---|---|---|
Ohio CollegeAdvantage 529 Plan | 394,915 | $9,978,892,777 | $25,268 |
Ohio CollegeAdvantage 529 Plan (Advisor) | 271,851 | $6,293,052,403 | $23,140 |
Ohio Guaranteed 529 Savings Plan | 5,813 | $137,056,353 | $23,578 |
Total | 672,579 | $16,409,001,533 | $24,397 |
Ohio CollegeAdvantage 529 Plan
The Ohio CollegeAdvantage 529 Plan is the name of Ohio's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include Vanguard and DFA.
Fees:
There is a program management fee of 0.125% (0.105% to the plan manager, and 0.02% to the state).
The underlying funds all charge expense ratios from 0.02% to 0.31% depending on the investment option.
Who Should Use It:
We recommend that Ohio residents use the Ohio CollegeAdvantage 529 plan due to the tax benefits, low fees, and plan investment options.
We recommend that out-of-state residents consider this plan as well.
Ohio 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
STABLE Account
The STABLE Account is a 529A plan open to all residents in Ohio.
This plan allows contributions of up to $18,000 per year from all sources.
It does have a minimum initial contribution amount of $50 per account. The minimum subsequent contribution amount is $1.
The plan does have an account maintenance fee of $30 annually, assessed at $2.50 per month. It also has a program management fee of 0.19% for Ohio residents and 0.45% for out of state residents.
You can open an STABLE Account here.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
Ohio Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Ohio Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Clint Proctor Reviewed by: Mark Kantrowitz