Rep. Gross Supports Bill to Raise Deduction Limits for State 529 Plan, ABLE Savings Account Contributions

COLUMBUS—The Ohio House of Representatives last week unanimously passed legislation to update tax deductions for contributions to state 529 plans and ABLE savings accounts, announced State Representative Jennifer Gross (R-West Chester).

House Bill 48 will raise the annual deduction limit for married, joint filers for contributions to state 529 plans and ABLE savings accounts to $8,000 as well as index the annual deduction limits to inflation beginning in 2026. 

Under current law, a ‘marriage penalty’ exists where married couples filing separately can deduct $4,000 each while married couples filing jointly can only deduct $4,000 total. House Bill 48 will remedy this issue by redefining the annual contribution limit in statute to allow for joint filers to claim an $8,000 deduction.

"This legislation supports Ohio families as they invest in education and the future wellbeing of their children,” said Gross.

House Bill 48 now awaits consideration from the Ohio Senate.