COLUMBUS, Ohio, May 28, 2015 /PRNewswire/ -- All over the country, states are celebrating 529 Day and Ohio is celebrating, too! Nationally, 529 Day on May 29 (get it? 5/29) is a day dedicated to promoting the importance of saving for the costs of higher education. This special day draws attention to 529 college savings plans and how these plans can help make the dream of going to college a reality.
In honor of 529 Day, Ohio's 529 college savings plan is giving away ten $2,500 CollegeAdvantage 529 College Savings Awards. Entries will be accepted through 11:59 p.m. ET on May 29 at www.WhatIsA529.com. No purchase is necessary to win. See complete contest rules on the website.
529 plans, named after Section 529 of the Internal Revenue Code, are tax-advantaged college savings plans designed to help families plan and save for higher education. Earnings on investments in a 529 plan are federal and state tax-free when used to pay qualified higher education expenses. Qualified expenses currently include tuition, fees, books and room and board.
Any Ohio taxpayer, including parents, grandparents, family members and friends who contribute directly to a CollegeAdvantage account (regardless of who owns the account) can claim a deduction of up to $2,000 in contributions per beneficiary, per year from their Ohio taxable income. The maximum allowable deduction per year is $2,000, but contributors can invest even more. Ohio allows contributions in excess of $2,000 per year, per beneficiary to be carried forward to future tax years until fully deducted.
For families with young children, 529s are a great way to start early and save over time in a tax-advantaged way. National 529 Day is a great reason to get started now. Enrollment in CollegeAdvantage, Ohio's 529 Plan, is easy at www.WhatIsA529.com. If your children are older, it's not too late to save what you can while also taking advantage of the great tax benefits.
Celebrating 25 years of helping families save for college, Ohio is the fifth largest state sponsor of 529 plans in the country with more than $9.45 billion in assets under management and over 644,000 total accounts, as of March 31.
About the Ohio Tuition Trust Authority/CollegeAdvantage: CollegeAdvantage is Ohio's 529 college savings program, offered and administered by the Ohio Tuition Trust Authority, a state agency under the Office of the Chancellor of the Ohio Board of Regents. Ohio is the fifth largest state sponsor of 529 plans in the country. CollegeAdvantage is offered as the CollegeAdvantage Direct 529 Savings Plan and the CollegeAdvantage Advisor 529 Saving Plan which is offered and marketed through BlackRock and sold through professional financial advisors. The CollegeAdvantage program, which offers families a tax-advantaged way to save for college, has more than $9.45 billion in assets under management and over 644,000 total accounts as of March 31, 2015. To learn more, visit www.CollegeAdvantage.com or see this "By the Numbers" Infographic or a history of CollegeAdvantage.
SOURCE Ohio Tuition Trust Authority