Ohio 529 Plan: What College Savers Should Know

According to the Federal Reserve, Ohio held about $14.3 billion in 529 college savings accounts and another $158 million in 529 prepaid tuition accounts in June 2022.^[1]

529 plans are state-sponsored college savings accounts. They help people save for college by investing in the stock market.

Anyone can enroll in an Ohio 529. Ohio residents get tax advantages for participating. Keep reading to learn more about the Ohio 529 plan options and rules for state residents.

Ohio 529

Ohio offers two 529 plans. One is an advisor 529 plan, meaning you have access to a financial advisor to help you decide on and stick to an investment strategy. This plan has higher fees compared to the direct-sold (non-advisor) plan.

Ohio's 529 Plan College Advantage

• Requires State Residency? No
• K-12 Expenses Eligible? Yes
• Fees: 0-0.435%
• Performance Notes: The 2024 age-based portfolio has gained 2.95% in average annual returns since its inception.

BlackRock CollegeAdvantage Advisor 529 Savings Plan

• Requires State Residency? No
• K-12 Expenses Eligible? Yes
• Fees: 0.165-2.175% plus a $25 annual maintenance fee for out-of-state residents only
• Performance Notes: The Class A 2024 portfolio has gained 3.38% in average annual returns since its inception.

Ohio 529 Rules and Tax Deduction

According to the College Savings Plan Network,^[2] state residents can deduct annual contributions to an Ohio 529 plan on their taxes — up to $4,000.

In Ohio, you can contribute up to $517,000 in total to college savings plans. Ohio also allows savers to use 529 plans for K-12 educational expenses.