Ohio, Michigan 529 plans get silver rating

10/16/2012

BOSTON — College savings plans offered through the states of Alaska, Maryland, Nevada, and Utah earned top marks from Morningstar Inc. in the company’s annual update to ratings of so-called 529 plans.

Another four plans — including Ohio’s and Michigan’s — received second-rung silver-medal ratings from Morningstar. Ohio’s CollegeAdvantage 529 Savings Plan, managed by the Ohio Tuition Trust Authority, dropped from “gold” last year to silver this year.

The Chicago-based company is best known for its research on mutual funds, but it also rates 529s, named after the federal tax code that created them in 1997. States set their own guidelines for these investment accounts, which permit withdrawals for college expenses to be made free of federal taxes.