Home /

Give Your Clients One More Reason to Rely on Your Financial Guidance

After saving for retirement, planning for a child's college education is the next big financial challenge for many of your clients. Discuss college planning with all your clients and prospects, and let them know that opening an Oklahoma College Savings Plan (OCSP) or an Oklahoma Dream529 Advisor Plan is a smart way to help prepare for a child's future higher education.

Oklahoma's 529 College Savings Program currently includes two separate 529 plans. The Direct Plan, OCSP, is sold directly by the Program. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation. For more information, please visit www.okdream529.com.

Become an expert on 529 College Savings Plans. Your clients will thank you.

Any Earnings Grow Federal and Oklahoma Income Tax-deferred
When your client contributes to the OCSP, any account earnings have the opportunity to grow federal and Oklahoma income tax-deferred until withdrawn.

Any Earnings Used to Pay for Qualified Higher Education Expenses Are Federal and Oklahoma Income Tax-Free
The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and Oklahoma income tax.

Oklahoma Income Tax Deduction
The amount contributed to the OCSP can be deducted from your Oklahoma taxable income up to a maximum of $10,000 per year ($20,000 for couples filing jointly). Any amount of a contribution made after 2004 that is not deducted by the taxpayer may be carried forward as a deduction from income for the succeeding five (5) years subject to the annual maximum deduction on contributions. Amounts deducted may be subject to recapture if a non-qualified withdrawal or rollover is taken (depending on the timing of such transactions), resulting in adverse Oklahoma income tax consequences. Read the Disclosure Booklet carefully.

Extended Tax Deduction Filing Deadline - For taxable years beginning after December 31, 2005, the state income tax deduction filing deadline for the Oklahoma College Savings Plan contributions has changed from December 31 to April 15 of the following year or the due date of the taxpayer's state income tax return, excluding extensions.

Federal Estate and Gift Tax Benefits
Contributions to the OCSP may reduce the taxable value of your client's estate. Contributions to the OCSP, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $13,000 per donor, per beneficiary for 2009. If an account owner's contribution to an OCSP Account for a beneficiary in a single year exceeds $13,000, the account owner may elect to treat up to $65,000 of the contributions, or $130,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion.