Columbus, OH April 1, 2010: On March 31, Governor Ted Strickland signed Senate Bill 155, which includes a provision to help Ohioans reach their college savings goals. Language in the bill will allow Ohioans to deposit their State of Ohio tax refund directly into an account with CollegeAdvantage, Ohio’s 529 college savings plan. “This bill offers a huge benefit for families saving for a child’s college education through Ohio’s 529 plan. Families will now be able to invest their state tax refund directly into their child’s 529 account, expanding the tax benefits available for Ohioans participating in CollegeAdvantage” said Mike Prescott, Executive Director of the Ohio Tuition Trust Authority.
“With this bill, Senators John Carey and Dale Miller, Representative Vernon Sykes, and Governor Strickland have helped Ohio families plan for the future and save for college,” said Chancellor Eric Fingerhut.
Senate Bill 155 was introduced by Senators John Carey (R-Wellston) and Dale Miller (D-Cleveland). An amendment to the bill, offered in the Ohio House of Representatives, will allow Ohioans to deposit their tax refunds directly into an existing CollegeAdvantage account when they file their Ohio tax return electronically. Ohioans will be able to take advantage of this benefit beginning with their tax returns for calendar year 2010. The bill was approved unanimously by the Ohio House of Representatives and agreed to unanimously by the Ohio Senate, on March 24, 2010.
Ohio’s 529 plan also offers Ohioans who contribute to a CollegeAdvantage 529 account a $2,000 state tax deduction. In addition, Ohio law permits a state tax exemption on withdrawals used for college expenses from 529 accounts.
Families can learn more about CollegeAdvantage at www.collegeadvantage529.com or by calling 1-800-AFFORD-IT (233-6734) to request more information and an enrollment packet.
The Ohio Tuition Trust Authority is a state agency within the office of the Chancellor of the Ohio Board of Regents and was created by the Ohio General Assembly in 1989. The Tuition Trust offers the CollegeAdvantage 529 Savings Plan to provide families with a tax-advantaged way to save for college. The CollegeAdvantage program currently has more than $5.7 billion in total assets on behalf nearly 786,000 beneficiaries as of Dec. 31, 2009.