COLUMBUS, Ohio, Sept. 7 /PRNewswire/ -- Governor Taft, along with the Ohio Tuition Trust Authority, has declared September 2006 College Savings Month to encourage families to plan ahead by saving for their children's college education.
"This fall the average tuition cost for one year at an Ohio 4 year public university is $8,461, it's easy to see the importance of saving ahead for college," said Jackie Williams, Executive Director of the Ohio Tuition Trust Authority and Chair of the national College Savings Plans Network (CSPN). "Given significant tuition increases we've seen over the past few years, a bachelor's degree will cost over $39,000 for a student who lives at home and graduates in four years."
CollegeAdvantage, Ohio's 529 college savings plan, offers a tax-free way to save for college, with initial investments as low as $15 and a variety of professionally managed investment options. "This is a great time to celebrate College Savings Month given the recent signing of the Pension Protection Act (H.R.4)," said Williams. "The bill removes the uncertainty regarding federal treatment on earnings for families saving for higher education through 529 plans."
The federal tax-free earnings provision for Section 529 college savings plans was set to end on December 31, 2010. The Pension Protection Act included language that permanently extends the federal tax exemption on funds withdrawn from 529 savings plans when used to pay qualified higher education expenses. In Ohio, earnings are also free from state taxation when funds are used for college. The state also offers a $2,000 annual income tax deduction for funds contributed to a CollegeAdvantage account.
Families interested in getting started can call 1-800-AFFORD-IT (233-6734) for an enrollment kit or go to www.collegeadvantage.com for information or to enroll online.
The Ohio Tuition Trust Authority is a state agency created by the Ohio General Assembly in 1989 to help Ohio families prepare financially for higher education. The Tuition Trust offers the CollegeAdvantage 529 Savings Plan to provide families with tax-advantaged investment options to save for college. To learn more about CollegeAdvantage, call 1-800-AFFORD-IT (1-800-233-6734) or log on at www.collegeadvantage.com.
Source: Ohio Tuition Trust Authority
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