News & Press Releases
Treasurer reminds Oklahomans there’s still time to invest in college savings and see potential tax savings this year
OKLAHOMA CITY – State Treasurer Ken Miller is reminding Oklahomans that there is still time to invest in their children’s or grandchildren’s future and see potential tax savings on their 2017 state income tax returns.
Miller, board chair of the Oklahoma 529 College Savings Plan (OCSP), noted that the OCSP is the only 529 college savings plan that offers an Oklahoma income tax deduction. Contributions to OCSP account that are made up to this year’s April 17 tax deadline are eligible for deductions on 2017 tax returns.
“This time of year, the Oklahoma College Savings Plan offers a win-win for Oklahomans,” Miller said. “Parent and grandparents can put away money for future college expenses and see tax savings on their 2017 returns.”
Miller noted that many families are not saving enough for college. One recent report found that a majority of parents who are saving for the children’s college education have saved less than $10,000.1
“The cost of a college education continues to rise, and that can frustrate and intimidate a lot of families,” Miller said. “An OCSP account allows families to set aside a little at a time, and that can add up over time. There are a lot of resources available on our website that can help families plan and, hopefully, take some of the fear and worry out of saving for college.”
In addition to the possibility of a state income tax deduction on plan contributions, any earnings to an OCSP account are federal and Oklahoma income tax-deferred, and distributions are federal and Oklahoma income tax-free when qualified withdrawals are made to fund an array of student expenses at most institutions of higher learning.
Funds may be used at most any private or public university, college or career technology center nationwide, and can be applied to tuition as well as other qualified expenses, including fees, books, supplies and certain room and board costs. Computers and related technology equipment also count as qualifying expenses for 529 plan account holders. Recently enacted legislation provides that beginning in 2018, qualified higher education expenses also includes tuition expenses of up to $10,000 per year per beneficiary in connection with enrollment and attendance at an elementary or secondary public, private or religious school.
For more information about the Oklahoma 529 College Savings Plan or to open an account, go to www.ok4saving.org or call (877) 654-7284.
About the OCSP
Oklahoma taxpayers may deduct from their Oklahoma adjusted gross income up to $10,000 in contributions to the Oklahoma 529 College Savings Plan for individual taxpayers and up to $20,000 for taxpayers filing a joint return with a five-year carryforward. Read the Disclosure Booklet carefully.
Any earnings in an OCSP account are federal and Oklahoma income tax-deferred, and distributions are also federal and Oklahoma income tax-free when qualified withdrawals are made to fund an array of student expenses at most institutions of higher learning. Funds may be used at virtually any private or public university, college or career technology center nationwide.
Introduced in April 2000, the Oklahoma 529 College Savings Plan had almost $850 million in total assets and more than 67,000 accounts, as of March 2, 2018.
Consider the investment objectives, risks, charges and expenses before investing in the Oklahoma College Savings Plan. Please visit www.ok4saving.org or call toll-free 1-877-654-7284 for a Plan Disclosure Booklet containing this and more information. Read it carefully.
Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarships and protection from creditors for investing in its own 529 plan. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss.
Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. If the funds aren't used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply.
Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA and SIPC, distributor and underwriter for the Oklahoma College Savings Plan.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Oklahoma College Savings Plan.
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