OHIO

Ohio CollegeAdvantage Savings Plan

Type: Savings (with prepaid option)

Phone: 800-Afford-It, 800-225-1581 (out-of-state)

State tax deduction for residents: Deductions for contributions up to $2,000 per year, per beneficiary (with a carryforward for large lump-sum contributions)

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings; in the prepaid option, no withdrawals until the beneficiary is age 18

Minimum/maximum contributions: $15 / $245,000

Other: For residents only, a prepaid (tuition units) option is also available

Ohio has overhauled its 529 plan, replacing a prepaid plan with a savings plan that includes a prepaid option. And it recently joined a class action suit against its fund manager, Putnam, for market timing. As of May, investors will be able to choose from 15 Vanguard funds (in addition to the exisitng Putnam options). Putnam offers an age-based portfolio, plus a growth fund (85% stocks, 15% bonds), an aggressive fund (100% stocks) and a balanced fund (60%/40%). Or you can choose from 13 individual funds. The age-based portfolio is 85% in stocks for newborns and reaches a 50/50 mix by age 12.

Expenses for Ohio residents who invest directly are an annual 1.05% of assets. Nonresidents and those who invest through brokers or financial advisers will pay higher fees.

State College Savings Plans