Ohio Tuition Trust Authority

Tax Benefit Tool

Compare a tax-free account with a taxable account

See how the advantages of tax-free growth with a 529 savings plan can really add up. If you are saving for college in a taxable savings account, you'll want to use this tool. See how your savings can grow when invested in a 529 account instead of a taxable savings account.

Your savings balance today

Planned annual contributions

Future lump-sum contribution

Years until lump-sum contribution

Years until college

Hypothetical annual rate of return

Federal tax rate

State tax rate

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Reminder

The savings amounts depicted by this calculator are estimates based on certain assumptions. There is no guarantee that savings projected will be achieved. The calculation results are estimates based on the information you have provided. To help understand and use the calculation output effectively, please note the following items:

This calculation is for hypothetical purposes only. The information entered may vary from actual individual circumstances. The calculation relies on certain assumptions in addition to the information you provided and does not guarantee future performance of any investment option. The Ohio Tuition Trust Authority will not be liable for any damages arising from the use or misuse of this calculator, reliance on calculated results, or from any errors or omission in the same. Use of this calculator does not in any way establish any agreement or relationship between the Ohio Tuition Trust Authority and any individual who is not an account owner of the Ohio Tuition Trust Authority, nor does it alter in any way the agreement between the Ohio Tuition Trust Authority and any account owner, which is contained in the Plan Offering Statement and Participation Agreement.
Any calculation does not take into account the costs or fees associated with (1) transferring assets between accounts, (2) the differences in the rate of return on investments within the account, or (3) investing in the Plan (i.e., total annual fee).
This calculator allows you to enter your hypothetical annual rate of return. The default rate used in this calculation is 6% if you do not choose a different hypothetical rate of return. Investments that tend to earn a higher rate of return in the long run may be more subject to changes in value. There is no guarantee that you will receive the rate of return that you use in this calculation.
The calculator allows you to enter your estimated federal and state income tax rates. Information displayed in the calculator does not represent an investment recommendation or legal or tax advice. The hypothetical tax savings presented may vary from your specific situation and should not be solely relied upon for making any investment decision.
If your state offers a 529 plan, you may want to consider what, if any, potential state income tax or other benefits it offers, before investing in CollegeAdvantage. State tax or other benefits should be one of many factors to be considered prior to making an investment decision. Please consult with your financial, tax or other advisor about how these state benefits, if any, may apply to your specific circumstances.
Ohio taxpayers who invest in CollegeAdvantage are eligible for certain tax benefits. See the Plan Offering Statement for specific details.

This calculator provides for a lump-sum amount that you expect to add to your child's savings at some time in the future. Enter the amount expected here, and enter the number of years until it will be added to the account on the next line.

For example, you might consider moving money from a taxable savings account to a 529 account or you might be expecting a tax refund that you could add to your child's savings.

State income tax rates vary from 0% to approximately 13% of earned income. Check you most recent state tax return for the rates used in your state.

The calculator uses the specified hypothetical annual rate of return to estimate hypothetical earnings on education savings. The default is set at 6%. You may specify another hypothetical annual rate of return. There is no guarantee that the rate used here will be achieved.

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