Beginning January 2024 OHIO is going to help(including recent graduates who have DREAMS of purchasing a home in the future) Ohio residents save for a down payment and/or closing costs at premium interest rates paid by Ohio financial institutions.
These accounts when opened by the individual will be administered similar to Ohio’s 529 plans for education expenses.
To qualify and open an Ohio Homebuyers Plus Account:
Ohio resident must be at least 18 years old
Your primary residence is in Ohio
Can only used the account proceeds toward the down
payment and/or closing of a primary residence
in Ohio.
The prospective homeowner can open this account with participating banks and/or credit unions thru the Ohio Homebuyers Plus program.
After the account is opened, the holder, family members and employers can contribute up to $5,000. ($10,000. MFJ) annually. The depositor can receive a tax deduction on their Ohio tax returns. The amount contributed by the employer will NOT become taxable to the employee.
All deposits in this account will be paid premium interested rates and will NOT be taxable if used within the five year timeframe, maintain a minimum balance of $100. and cannot exceed a maximum balance of $100,000.
The account MUST be used within five years to purchase a home in Ohio. If not used after the five years the balance will become taxable.
Check out this opportunity after January 1, 2024 at your local financial institution. If you are concerned that our future generation will not be able to afford homeownership, here is an avenue to help them and yourself tax wise.