COLUMBUS, Ohio (AP) — A new record-keeping system for Ohio's college-savings plan doesn't allow for third-party, automatic contributions, meaning friends and relatives who want to pitch in for now must use other options, such as directly paying account holders.
The Columbus Dispatch (http://bit.ly/1bQ1oMH ) reports that the Ohio Tuition Trust Authority hopes to make changes that would again enable third parties to automatically contribute to CollegeAdvantage 529 savings accounts.
The authority's executive director, Paul Paeglis, says that's not allowed with the new system because the person in control of an account, such as a parent, could see banking information for an outside contributor, such as a grandparent.
The limitation doesn't affect most of the savings accounts. Paeglis says about one-third of the accounts have automatic contributions, but most of those come from the account holders.