Resource · Life Transitions
College Savings With a 529
How 529 plans work, who should fund them, and the new rules around leftover balances.
A 529 plan is a tax-advantaged way to save for education, and the rules have become more flexible in recent years. This primer explains how it works for parents, grandparents, and anyone else saving for a student, with a focus on Ohio’s CollegeAdvantage plan.
What’s inside
How a 529 works
Earnings grow free of federal and Ohio income tax, and withdrawals are tax-free when used for qualified education expenses.
Ohio’s state tax deduction
How Ohio’s deduction works for each beneficiary, and how contributions above the yearly limit carry forward.
Superfunding
How a special gift tax election lets you contribute up to five years of annual gifts at once, and the tradeoff that comes with it.
If the student skips college
Options such as changing the beneficiary, a limited rollover to a Roth individual retirement account (IRA), and other qualified uses.
Other things worth knowing
Why opening early helps, how grandparent-owned accounts are treated for financial aid, and how age-based investment options work.
Fund education without straining the plan
Download the primer and bring your questions to your next review. We look at a 529 alongside your retirement savings and other goals before you commit.
This content is for informational purposes only and is not individualized advice.