[Mail_treas] Ohio's 529 Plan -College Advantage -- as a payroll deduction 703- direct deposit

[Kristin O'Dell]

Ohio's 529 Plan -College Advantage -- as a payroll deduction 703- direct deposit

I have an employee who submitted an
Ohio's 529 Plan -College Advantage -- as a payroll deduction 703- direct deposit last year.  I honestly haven't had an employee with this before I came here this year.  New to me.
He checked in with me this year to ask why it wasn't coded as an annuity and tax sheltered.
So I read a few different pages regarding,  and basically see that the contributor will receive verification in January annually of their contributions.  The amount allowable by State of Ohio (for 18 it doubled to $4000)  amount can be deducted on the State of Ohio income tax return.  [The contributions to a College Advantage Direct Plan Account are generally considered completed gifts for federal tax purposes...]

I also read on another page that is federal and state tax deductible.... Nowhere do I see that Medicare is effected so that's why, I'm guessing, that it cannot be treated as an annuity in state software.
Is that a sufficient response to staff?  Do any of you have a better tax/investment background and may be able to formulate a more accurate response for me ?  Thanks for any input.



https://www.collegeadvantage.com/blog/blog-detail/posts/2018/01/01/state-income-tax-deduction-doubles-to-4-000

State Income Tax Deduction Doubles To $4,000<https://www.collegeadvantage.com/blog/blog-detail/posts/2018/01/01/state-income-tax-deduction-doubles-to-4-000>
www.collegeadvantage.com
Saving for college in a 529 plan has many benefits; ranging from the power of compound interest, a wide variety of investment options, tax-free earnings, and tax-free withdrawals.



Kristin O'Dell, Treasurer/CFO

Pickaway County ESC

2050 Stoneridge Dr.

Circleville, OH 43113

kristin.odell at pickawayesc.org



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