Case Western Reserve University employees now can use direct deposit to make contributions to a new or existing CollegeAdvantage 529 savings plan. To do so, visit collegeadvantage.com to create an account or log into an existing account and follow the instructions to set up a payroll deduction.
Using the account and routing numbers, employees then can go to “Self Service” in HCM and add CollegeAdvantage as one of their five possible accounts for distribution via direct deposit. For help setting up direct deposit refer to the HCM Direct Deposit Guide or contact the Help Desk at 216.368.HELP.
Employees will have only one direct deposit account for CollegeAdvantage even if they have savings plans for multiple beneficiaries. Distribution into individual accounts will occur once their payroll deduction reaches CollegeAdvantage.
Things to remember about CollegeAdvantage 529 contributions:
- Your deduction in HCM is per pay period. Those paid twice per month should enter their deduction amount accordingly.
- Contributions to a CollegeAdvantage 529 plan are in “after tax” dollars, but you’ll pay no taxes as your funds grow, and withdrawals used for qualified college expenses are exempt from both federal and Ohio income tax.
- The CollegeAdvantage 529 plan allows Ohio taxpayers to deduct contributions from Ohio taxable income up to $2000 per beneficiary annually.
- Employees can only utilize direct deposit to make contributions to a CollegeAdvantage account for their dependents or themselves. Visit collegeadvantage.com to learn about making a gift to someone else’s 529 plan.