UPDATE: The $25 sign up bonus for the College Advantage 529 plan is back! Please see my latest article on the Ohio 529 College Advantage $25 Sign Up Bonus.
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!
Ohio 529 Plan Details
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.
How to Earn Your Referral Bonus
- Open a new 529 account with $25.
- Enter the following referral code: 2323158
- You will receive a $25 credit to your account within 7-10 business days after your account is established. (And I will get $25 for referring you.)
- You must establish an account on or before December 15, 2008 in order to be eligible to receive the referral bonus.
- Send your name and e-mail address so I can add you to my referral list.
Tips and Tricks
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 (Just remember, earnings are subject to income tax when withdrawn, plus 10% additional federal tax.)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).
You can get my latest articles full of valuable tips
and other information delivered directly to your email for free
simply by entering your email address below. Your address will never be sold or used for spam and you can unsubscribe at any time.
Does this 529 perform a credit check? I ask because I don’t want to dent my credit score, albeit temporarily, for $25.
I verified with College Advantage that there is no credit check.
While I had them on the line, I also verified that I do not need to add you to my referral list as stated in #5. So you should be able to sign up with the referral code without notifying me.
Thanks for this. I’ve been wanting to set up college savings plans for my two young sons (ages 4 & 2) for, oh, four years now and it just all seems so confusing. This might be the motivation I need to just go and do it already!
Is there a limit to how many times these referrals can be used? I do not believe there is a limit to the number of 529 accounts a single individual may have open at one time. Could this be used to get an automatic 200% return on an amount up to the maximum contribution limit ($321,000 for Ohio’s plan)? You’d have to add that amount in $75 incriments of course ($25 contribution, $25 match in referral’s account, $25 match in new account) but it’s still a great return.
@ NickFadz: I like the way you think! Here is some info from the Q&A:
Q. Is there a limit to how many referral bonuses I can receive?
A. Yes. An individual (Account Owner) can earn a maximum of 20 referral bonuses for a total of $500.
Q. I currently have two CollegeAdvantage accounts, but have not yet opened an account for my third child. Can I receive a referral bonus for opening a new account for my own child?
A. Yes, you would receive a $25 referral bonus for one of your existing accounts (whichever one you used as the referral code) and a $25 referral bonus for the new account. Simply complete the referral bonus section on either the online or paper application when you open the new account.
I can’t find anything that prevents you from opening multiple accounts yourself. With the one about the kids, they imply that each account will have a different beneficiary, but it doesn’t say it has to be.
If you decide to try out such an adventure… keep me posted on how it works!
Is the bonus money deposit in the 529 plan or the bank account?
@ Gaby: The bonus money will be added to the 529.