Monday is Memorial Day. Most everyone in the nation will be honoring America’s brave service men and women. Ohio’s Tuition Trust Authority wants consumers to think about their career on this precious day. After all, it is one of the many freedoms bestowed upon Americans by America’s army men and women. On May the 29th or 529 Day, Ohio officials want to draw attention to college savings plans. The “529 Day Giveaway” actually began on May the 22nd of 2017. It will end on Sunday, June the 11th. CollegeAdvantage plans to give away $529 college savings awards, while also launching its annual Graduation Campaign in hopes of encouraging more Americans to save for college.
No purchase is necessary to enter the giveaway. Those wishing to participate simply need to head over to www.collegeadvantage.com to sign up. Click on the “Win $529 for College!” banner and fill out the form displayed on the screen. Each household is eligible for a single entry. Current CollegeAdvantage account holders may also enter the contest. Each award will be provided to the winner in the form of a contribution to a CollegeAdvantage Direct 529 Savings Plan Account.
529 College savings plans receive their name thanks to Section 529 of the Internal Revenue Code. Such plans offer various benefits. For starters, the funds saved in a 529 account are tax free when the money is used for education expenses, including college fees, books, tuition, and computers. The plans are designed to aid families that wish to save money for higher education expenses. Simultaneously, the plans help to reduce the dependency on student loans.
In the State of Ohio, taxpayers receive more tax savings when contributing to a CollegeAdvantage account. Parents, family members, and grandparents that contribute to such an account will be able to claim a tax deduction of up to 2,000 dollars in contributions for each beneficiary. While the maximum allowable deduction per year sits at $2,000, consumers can contribute more and carry over the contributions to future tax years, until the entire amount has been fully deducted.
Funds stored in a CollegeAdvantage account can be used to pay for higher education at any accredited college in the United States. More details can be found here.