Ohio 529 Investment Options: A Comprehensive Guide

Ohio's 529 Plan: A Smart Choice for Education Savings

Ohio's 529 plan, the College Advantage 529 Savings Program, is a tax-advantaged savings plan designed to help families save for higher education expenses. With Ohio's 529 plan, you can earn interest on your savings tax-free, and withdrawals used for qualified education expenses are also tax-free.

Investment Options

Ohio's 529 plan offers a variety of investment options to choose from, including:

• Age-Based Portfolios: These portfolios automatically adjust the asset allocation based on the beneficiary's age, becoming more conservative as they get closer to college.
• Target-Date Portfolios: Similar to age-based portfolios, target-date portfolios adjust the asset allocation based on a specific target date, such as the year the beneficiary is expected to graduate from college.
• Index Funds: These funds track a specific market index, such as the S&P 500, and offer a low-cost way to diversify your portfolio.
• Bond Funds: These funds invest primarily in bonds, which offer a lower risk than stocks but also a lower potential return.
• Money Market Funds: These funds invest primarily in short-term, highly liquid investments, such as Treasury bills, and offer a low risk and a low return.

Choosing the Right Investment Option

The best investment option for you will depend on your individual circumstances and financial goals. Consider the following factors when making your decision:

• Investment Horizon: How long will you be saving before the beneficiary needs the money?
• Risk Tolerance: How much risk are you comfortable taking with your investment?
• Financial Goals: What are your specific financial goals for the beneficiary's education?

Benefits of Ohio's 529 Plan

There are many benefits to saving for college with Ohio's 529 plan, including:

• Tax-Free Growth: Interest earned on your savings grows tax-free, and withdrawals used for qualified education expenses are also tax-free.
• State Tax Deduction: Ohio residents can deduct contributions to their 529 plan from their state income taxes, up to $4,000 per year for single filers and $8,000 per year for joint filers.
• Flexibility: You can use funds from your 529 plan to pay for a variety of qualified education expenses, including tuition, fees, books, and room and board.
• Peace of Mind: Knowing that you are saving for your child's education can give you peace of mind about their future.

How to Open an Account

Opening an account with Ohio's 529 plan is easy. You can open an account online, by mail, or by phone. You will need to provide basic information about yourself and the beneficiary, and you will need to choose an investment option.

Additional Resources

For more information about Ohio's 529 plan, please visit the College Advantage 529 Savings Program website. You can also contact the program at 1-800-448-4492.

Table 1: Ohio's 529 Plan Investment Options

Table 2: Benefits of Ohio's 529 Plan

Table 3: Common Mistakes to Avoid When Investing in a 529 Plan

Table 4: Questions to Ask Yourself When Choosing an Investment Option