This is a reminder that the Ohio CollegeAdvantage 529 Plan is offering some excellent incentives for those looking to start putting some money aside for college. Open to residents of any state, the best part is that this is one of the nation’s best 529 plans for those looking for low-cost investment options and a good customer experience. Here’s an example of how a couple can earn a free $150 jumpstart on their college fund. While I use the term “parent”, this would work for any two people – grandparents, aunts, brothers, friends, etc.
- Parent #1 opens a new Ohio 529 account using a referral from an existing user (details below). They list the child’s name as beneficiary. Parent #1 earns $25 incentive.
- Parent #2 open a new Ohio 529 account as well, using a referral from Person #1. This account can also list the child’s name as beneficiary. Parent #1 earns $50, and Parent #2 earns $25.
- Both people also start a automatic savings plan with just a $25 minimum monthly deposit (details below). This earns another $25 each.
- Add them all up, and that amounts to $150 in free money towards college. All the applications and deposits are done electronically quickly and with minimal hassle. Keep up the automatic deposits, and make saving for college easy.
Refer-A-Friend Bonus
If you open a new account and enter the referral code of an existing member, the new member will get a $25 bonus into their account. The referring member will get $50. My referral code is 2439350. This current promotion expires December 15, 2009. Many more details here.
$25 Systematic Savings Bonus
If you start a new recurring electronic funds transfer (EFT) from your bank account into your 529 account of at least $25 per month for 3 months, you will receive a separate bonus of $25. This recurring transfer must be started by January 31, 2010. Many more details here.
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Very cool!
I’m taking a pass though, and here’s why…
I live in New York, and actually get much more than the $150-200 by deducting my 529 contributions off my state income tax. Of course, New York has ridiculously high tax rates and it may benefit people from other states to use Ohio’s 529, but it’s something to keep in mind.
hey,
I haven’t done that much research on 529 plan. Can married couple with no children yet start this plan? do you have a link to a post with details of the plan? thanks.
rupneu1. Yes 529 is for anyone that will use the funds for education.
so you can open accounts for both. And have a total of four accounts between the two of you. Then latter file change of Beneficiary to change the accounts to your childs name.
Love your blog! Always getting great information from it.
I’ve been meaning to open a 529 plan for awhile even though I’m only 23. Could be useful if I decide to go for an MBA and if not then I’ll get an early start to saving for my kids one day. Enjoy the $50 credit!
That $150 can help buy book and pay for some fees – nothing to sneeze at.
Thanks for that. You should be getting an extra $50 from my sign up.
Has anyone done a recent comparison of Guaranteed Tuition programs vs 529 programs? Such as the Washington GET vs the Oh 529? I keep going back and forth on which I want to do (and think I’ll end up doing both). The Washington tuition is rising 14% this year, but you could argue that your investments will be rising more than that this year…
Jonathan, please correct me if I am wrong, but I think according to this algorithm, you could get more than $150 free money:
1) Parent A opens new account (account A) using existing referral = $25
2) Parent B opens another new account (account B) with Parent A’s referral ($25 to each parent) = $50
3) Parent A starts a new recurring EFT from his bank account, and Parent B starts a new recurring EFT from her bank ($25 for each EFT in account A) = $50
4) Similar to step (3) , Parent B and A start a new recurring EFT from their respective bank accounts into account B ($25 for each EFT in account B) = $50
Total = $175
@Sri – Only one ETF bonus can be earned per person per beneficiary. One for Parent B, one for Parent A.
What are the expense ratios of their Vanguard funds? Any other fees/charges?
Jonathan —
FYI I just found out through opening new accounts that parents with multiple children can earn multiple referral bonuses even if you already have an account with another child.
Here’s what I did:
Referred my wife to open an account for Son A using Daughter’s Account #. Daughter got $50, Son A got $25.
My wife referred me to open an account for Son B using Son A’s Account #. Son A got $50 and Son B got $25.
I wonder if I could keep referring back and forth until both my wife and I each have accounts for all 3 children, thus clearing another $225 in referral bonuses? Anybody out there tried this?
PS If anyone needs a number for referral, here you go: (removed as rotating list already exists)