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Morningstar Analyst Rating upgrades Oklahoma 529 College Savings Plan to Bronze
The Oklahoma 529 College Savings Plan (OCSP) has been upgraded to Bronze and named one of the Best in Class 529 plans in the nation, according to the latest Morningstar Analyst Rankings. It marks the first time in its 20-year history OCSP has attained the prestigious 529 investment ranking.
Morningstar writes, “Oklahoma residents should look no further for their best option to save and grow their college savings. The state’s generous tax deduction of up to $20,000 annually for couples filing jointly [$10,000 annually if filing singly] is too good to pass up.”1
In 2020, OCSP implemented a new lower minimum account contribution of $25 and reduced fees 16%, making it easier than ever for Oklahoma families to open accounts and save more. This year also saw the transition to enrollment year investment options, featuring an investment mix that corresponds to a child’s expected year of enrollment.
“The recognition from Morningstar, one of America’s leading investment research firms, is an outstanding achievement by the Oklahoma 529 College Savings Plan,” said State Treasurer Randy McDaniel. “It’s also a timely reminder for Oklahomans to improve their family’s financial wellness. Saving in an OCSP account for tuition, living expenses and other higher education costs can mean less debt and greater opportunities for Oklahoma students to develop their skills and knowledge.”
Treasurer McDaniel said there are more than 58,000 OCSP accounts with assets in the Plan over $1 billion as of September 30, 2020. He said the Bronze ranking will hopefully bring more awareness to Oklahoma’s only direct-sold, state-sponsored 529 plan with state tax advantages. Funds saved in OCSP accounts may be used at colleges, universities and technology centers nationwide and even for K-12 tuition and continuing education.
“With its strong lineup of investment choices, expanded number of qualified uses and advantageous tax benefits, OCSP is an excellent plan for saving for college,” adds Treasurer McDaniel.
For more information about OCSP or to create an account, visit ok4saving.org or call 1-877-654-7284.
About the OCSP
Introduced in April 2000, the Oklahoma 529 College Saving Plan (OCSP) is Oklahoma’s direct-sold 529 college savings plan. It is designed for families who want to open and manage their own 529 college savings accounts. The Plan is managed by TIAA-CREF Tuition Financing, Inc.
1Jason Kephart, Oklahoma College Savings Plan Analysis, Morningstar, October 27, 2020.
In an annual review (10/27/2020) of the largest 529 college savings plans (61 total), Morningstar identified 35 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2020. These plans offer investment options that Morningstar expects will collectively outperform and exhibit some combination of the following attractive features across four key pillars: a well-researched asset-allocation approach, a robust process for selecting underlying investments, an appropriate set of options to meet investor needs, strong oversight from the state and investment manager, and low fees. The four key pillars used by Morningstar to evaluate college savings plans include – Process, People, Parent, and Price. For more information about Morningstar’s overview of the Oklahoma 529 College Saving Plan, go to Morningstar.com. Past performance does not predict future results. Source: Morningstar.com. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions.
To learn more about the Oklahoma 529 College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Plan Description at ok4saving.org. Read it carefully. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan.TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529 College Savings Plan.