SOURCE: Ohio Tuition Trust Authority

Ohio Tuition Trust Authority

October 27, 2011 16:13 ET

Ohio's 529 Plan Rated "Top 6" College Savings Plan in the Nation by Morningstar for Third Consecutive Year

COLUMBUS, OH--(Marketwire - Oct 27, 2011) - In a report released today (, Morningstar, Inc., a leading provider of independent investment research, has once again named Ohio's CollegeAdvantage 529 direct plan one of the top six college savings plans in the nation. In their report, Morningstar highlighted Ohio's use of a quality, diversified money managers and the plan's low fees.

"We are more than pleased that Morningstar has again recognized the strong value of Ohio's plan for a third consecutive year. Ohio offers one of the more innovative, quality, low-cost plans in the country providing families with a premier college savings plan," said Richard Norman, interim executive director of the Ohio Tuition Trust Authority. "With contributions starting as low as $25, Ohio provides an affordable, world-class program for families in Ohio and across the country."

This is the eighth annual report Morningstar has issued on 529 plans. Last year Morningstar developed a new analyst ratings system representing their most comprehensive efforts to date. Morningstar is now providing ratings on plans as well as the investment options contained within them. To determine a plan's Analyst Rating, Morningstar's analysts considered five factors: the quality of the portfolio of investment options; the investment options' performance; the skill of the options' managers; the stewardship practices of the 529 plan's program manager; and the costs associated with the plan. Plans are then assigned ratings of "Top," "Above Average," "Average," "Below Average," and "Bottom." Of the six plans earning the highest ratings, five of them were rated "Top" last year.

The CollegeAdvantage direct plan offers a wide variety of investment options managed by The Vanguard Group, Fifth Third Bank, PIMCO, OppenheimerFunds, and GE Asset Management. Ohio also offers the BlackRock CollegeAdvantage 529 Advisor ( plan which received an average rating by Morningstar. The BlackRock plan is exclusively available through financial advisors for families looking for professional investment advice and service.

Ohio's 529 plans provide state and federal tax advantages to help families save. Withdrawals used for qualified higher education expenses are exempt from both federal and Ohio income tax. Ohio also offers a state tax deduction to encourage savings. Ohioans who enroll in and contribute to CollegeAdvantage can take advantage of a $2,000 annual state of Ohio income tax deduction. Contributions over $2,000 per child can be deducted in future years.

Families can open a CollegeAdvantage account by going online at or by calling 1-800-AFFORD-IT (233-6734) and requesting an enrollment kit. For more information about CollegeAdvantage or the Ohio Tuition Trust Authority please visit or become a fan of CollegeAdvantage on Facebook or follow @Ohio529Plan on Twitter.

About the Ohio Tuition Trust Authority
The Ohio Tuition Trust Authority is a state agency within the office of the Chancellor of the Ohio Board of Regents and was created by the Ohio General Assembly in 1989. The Tuition Trust offers the CollegeAdvantage 529 Savings Plan to provide families with a tax-advantaged way to save for college. The CollegeAdvantage program currently has over $6.7 billion in total assets on behalf of 701,000 beneficiaries as of September 30, 2011.

Contact Information

  • Contact:
    Judy Cunningham
    PR Manager
    Ohio Tuition Trust Authority
    Email Contact