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Ohio's Direct 529 Plan Receives Silver Rating from MorningstarOhio's 529 Plan is pleased to announce that the CollegeAdvantage Direct 529 Plan maintained its silver rating for the ninth year in a row. In addition, BlackRock CollegeAdvantage, Ohio's Advisor 529 Plan, retained its bronze ranking. According to the report, this makes Ohio one of only two state programs that have both their Direct and Advisor 529 Plans ranked as medal-class college savings programs by Morningstar. The high ranking for both CollegeAdvantage 529 Plans highlights the strength of these two college savings plans as well as the industry's regard for Ohio's 529 Plan as one of the best in the nation. Plans are rated based on the quality of the portfolio of investments options, skill of the options' managers, stewardship practices of the 529 plan's program manager, and costs associates with the plan. Morningstar research process to determine the ranking of a 529 plan, is based in four pillars. Ohio's Direct 529 Plan ranked positive in all four pillars, making it one of only eight plans nationwide to do so. The pillars are:
According to Bobby Blue, an analysist for Morningstar who reviewed Ohio's Direct 529 Plan, "The Ohio ColegeAdvantage 529 Savings Plan benefits from a strong investment team, low fees, and a state partner willing to go to bat for participants. It retains its Morningstar Analyst Rating of Silver, making it an excellent choice for Buckeyes and out-of-staters alike." Blue also stated that longtime CIO Trisha Good (1996) and CEO Tim Gorrell (2015) are stabilizing leaders on their team, which they have pushed to include lower-fee products in the age-based portfolios in order to pass savings on to the investor. "We're pleased that Morningstar recognizes CollegeAdvantage as one of the best plans in the country. We believe we offer the very best college savings and investment opportunities in the country," said Tim Gorrell, Executive Director for Ohio's 529 Savings Program, "and for Morningstar, a highly regarded industry observer, to rate our plans so highly only promotes greater trust and confidence among our current and potential account holders." For the BlackRock CollegeAdvantage 529 Plan, Blue says that Ohio BlackRock CollegeAdvantage 529 Plan's "benefits from a seasoned asset-allocation team that plies a proven approach to tactical allocation. It earns a Morningstar Analyst Rating of Bronze, solidifying it as a solid choice for college savers." But, Morningstar isn't the only industry resource singing CollegeAdvantage's praises. SavingforCollege.com in its most recent quarterly analysis of 529 plan investment performances ranks Ohio's Direct 529, CollegeAdvantage first in the nation for the best investment performance in two categories: three-year and ten-year investment performance. Savingforcollege.com ranks a 529 plan's performance score by comparing seven similar asset-allocating categories between all the nation's 529 plans, the historical performance of each selected portfolio category, and then averaging the score of all the groupings. Savingforcollege.com also uses a "five-cap" ranking system. 5-Cap ratings are based on flexibility, attractive investments options, and a generous tax benefit. Savingforcollege.com ranks Ohio's Direct 529 Plan a great value for residents of Ohio and those living out-of-state. Ohio's Direct 529 Plan is one of only two 529 college savings plans nationwide to earn a 5-Cap rating for both residents and non-residents, as of June 30, 2021. Ohio's Direct 529 Saving Plan has received this recognition multiple times for the plan's attractiveness for Ohioans and across the nation. Families can open an account for as little as $25. Any Ohio taxpayer (parents, grandparents, other family members and/or friends) who contributes to the account can claim a deduction of up to $4,000 per beneficiary, per year, from their state of Ohio taxable income. Ohioans have until 4:00 pm ET, December 30, 2021, to make those last-minute contributions. Account owners pay no taxes on the funds as they grow and withdrawals used for 529 qualified higher education expenses are free from state and federal income taxes. Funds in Ohio's 529 Plan can be used for all types of qualified higher education institutions, including a four-year college or university (public or private), two-year community college, technical or trade school, apprenticeship, or a certificate program. Funds may be used to pay qualified higher education expenses cost including tuition, fees, room and board, books, computers, and class supplies. Families can even use up to $10,000 for student loan repayment. About the Ohio Tuition Trust Authority/Ohio's Direct 529 Ohio's 529 Plan is offered and administered by the Ohio Tuition Trust Authority, (OTTA), a state agency under the Office of the Chancellor of the Ohio Department of Higher Education. Ohio is the seventh-largest state sponsor of 529 plans in the country. Ohio's 529 Plan is offered as the CollegeAdvantage Direct 529 Savings Plan and the Blackrock CollegeAdvantage 529 Plan, which is offered and marketed through BlackRock and sold through professional financial advisors. Learn, plan and start today with Ohio's 529 Plan at https://www.collegeadvantage.com/
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