Preparing For The Future With A Ohio 529 College Savings Plan

Graduation is a season of accomplishments, celebrations, and reflection. If having a child has
taught me anything, it is that the years are short. Before long, I will be the proud parent watching
my daughter receive her diploma, then stepping out into the world. To give her the best start
we have opened an Ohio 529 College Savings Plan.
Sophie currently wants to be a Ballerina Dentist when she grows up and we want to support her
every step of the way! But a big dream like that needs a higher education savings plan
that will work in her favor. Whether it be a traditional four-year college or trade school, here are
a few benefits of opening an Ohio 529 College Savings Plan.

What Is An Ohio 529 College Savings Plan

Ohio’s 529 is a tax-free college savings plan that provides a tax-advantaged way
to save for future higher education expenses. Families in any state can benefit from Ohio’s 529
College Savings Plan. You’re not required to live in Ohio, nor is your child required to attend
school in Ohio to take advantage of Ohio’s 529 plan.
529 savings plans generally invest your contribution in mutual fund-based investments where
your account value is based on investment performance. Ohio’s 529 also offers FDIC-insured
banking options.

Did We Mention Tax-Free Growth?!

The key benefit of signing up for the Ohio 529 College Savings Plan is that your account grows
tax-free. In addition, qualified withdrawals are free from federal and state income tax.
Ohioans can also utilize a State of Ohio tax deduction of up to $4,000 per child.

The 529 College Saving Plans Are Not Just For 4-Year Programs

A key reason we invested with Ohio’s 529 plan is that the funds can be used for educational
programs outside of a four-year program. It is difficult to determine what area of study your child
will wish to pursue. Therefore, investing in a plan that can provide funds to trade schools is vital.
Today she wants to be a ballerina dentist, tomorrow a mechanic zookeeper!

How soon can you open an Ohio 529 Plan for your child?

Parents can start saving for their child’s education before they are born! One parent simply
opens an account in their own name and transfers it once the baby is born and has a Social
Security number.

The Cost Of Waiting Tool

This is an eye opener to calculate just how much college is going to cost for your child(ren)! We
were astounded with how much we needed to put aside, which made us immediately open an
account. The sooner you start saving for college, the quicker you can take advantage of
compounding interest and the longer you will have to grow your savings. Though it’s never too

late to begin, it’s ideal to start saving when your child is young. The Cost Of Waiting Tool will
show approximately how much more you will need to save if you don’t start soon!

Parents who are currently putting their tax refunds and other savings into a traditional savings
account are leaving serious saving potential on the table!

Consider this scenario: The average 2019 federal tax refund for Ohioans was $2,510. By adding
$2,510 a year to an Ohio 529 account, you could cover almost 38 percent of colllege costs at an
Ohio public university, based on 18 years at 6% growth.

• *Assumes growth rate of 6% in the 529 plan and a bank savings interest rate of
.09% as reported by the Federal Reserve Bank of St. Louis 1/2020. Also, important
to note that this is only a projection, and individual results could be lower or
higher, much like mutual funds in a 401K plan.

Utilize The College Savings Planner To Help Plan For The Future

This tool is extremely helpful when putting together a long-term plan for planning out goals and
determining what is needed to meet the objective. The College Savings Planner will give an
inside look at how a tax-advantaged savings option can help, along with how much money to
start putting aside.

A Wealth Of Knowledge Can Be Found On The Ohio’s 529 Blog

The Ohio’s 529 Blog is an excellent resource full of articles helping guide families to make the
best investments possible. From highlighting great partners that can help put more money
aside to helpful tips and best practices. Take this quiz to test your 529 knowledge!

How To Sign Up For An Ohio 529 Plan

Signing up for an Ohio 529 College Savings Plan is easy, which is one of the reasons we love
it. While some families choose to work with a professional financial advisor to set up their
accounts, many families opt to do it themselves.
Ready-made portfolios allow families to pick a plan that best suits their needs, or create their
own individual investment options. This includes FDIC-insured banking options. -Ohio’s 529
partners with leading investment managers Vanguard, Dimensional Fund Advisors, Fifth Third
Bank, and BlackRock (Advisor Plan) to bring families the best choices.
In addition, if your investment preferences or goals change, you can make changes twice
yearly.

Preparing for the future is never simple, but we are grateful Ohio 529 College Savings Plan can
help make it easier.