Posted byon September 19, 2008
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My favorite 529 plan just got even better! The Ohio College Advantage 529 plan is giving out $25 sign up bonuses for friends and family. And you don’t have to live in Ohio to take advantage of it!
For those of you new to My Dollar Plan, every Friday is Free Money Friday! There is no better way to end the week than finding a free money deal!
The Ohio plan is one of my favorites because of the low fees and investment options. You can invest in the Vanguard 500 index fund with 0.19% expense ratio. In addition to the low fund expenses, there is no enrollment fee or maintenance fee.
Refer Your family members. Sweeten the deal for multiple family members. If you open an account for one child, you can refer yourself to open a second account for another child to earn an extra $25 in each account. ($25 referral + 2 x $25 sign up bonus = $75)
No Kids? No Problem. Just use yourself as the beneficiary. (And refer your spouse for a second account if you want.)
No Plans for College? You can withdraw your deposit and referral bonus five business days after it is deposited. (Just remember, earnings are subject to income tax when withdrawn, plus 10% additional federal tax.)
Deduction for Ohio residents. Anyone can use the Ohio plan, but if you are a resident you can deduct contributions from Ohio income tax ($2,000 annually).