It's not new, but it works - 529 College Savings Plan

Managing taxes is likely to be a top priority as you make decisions for your portfolio.  If you hope to send a child to college, that’s probably a priority, too.  Here's one simple strategy that can help you pursue both these important goals: a 529 College Savings Plan.

While 529 Plans are not new, there are reasons why now might be the best time to take advantage of them.

Qualified withdrawals are not subject to federal income tax and may be used at most accredited colleges and state universities nationwide.

New investing choices make 529 Plans more flexible than ever.  You may select an investment strategy based on the child’s age, or select portfolios based on your investing style.

There are no income restrictions on opening a 529 Plan, and the plans have high contribution limits.  529 Plans offer significant gift and estate tax advantages that may help you reduce your potential estate taxes.  You may contribute up to $70,000 ($140,000 for a married couple) per beneficiary in one year as long as you make no further gifts to the same person within five years.  This lump sum is gift tax free.  The gift is not considered a part of your estate for planning purposes (as long as you survive for a period of five years).

Contributions, including rollover contributions, to a Ohio 529 plan of up to $2,000 per beneficiary per year (any filing status) are deductible in computing Ohio taxable income, with an unlimited carryforward of excess contributions. Contributions must be made by the end of the year.