News & Press Releases
Oklahoma 529 College Savings Plan surpasses $500 million in qualified withdrawals
OKLAHOMA CITY – An Oklahoma City-area family is one of thousands of families who have paid for college with their Oklahoma 529 College Savings Plan (OCSP) account. OCSP recently surpassed a major milestone of $500 million being used over the course of its 19-year history to pay for higher education expenses. Sam and Sandy Moore, who used OCSP accounts to pay for their children’s college education, encourage other Oklahoma families to start saving for college this year.
“The OCSP is a structured way to invest in your child’s future,” said Sam Moore. “Once you set up your payroll deduction, you don’t have to think about it. Most people want to invest for their children but without the OCSP structure, there always seems to be something that comes up that they need the money for. Most never seem to make up the missed savings.”
The Moore’s children, Leslie and Kyle, are two of more than 25,000 beneficiaries who have used OCSP accounts to cover higher education expenses since the plan was introduced in 2000. Leslie holds a Bachelor of Science degree in nursing and Kyle earned a Bachelor of Arts in marketing management with an emphasis in professional selling.
According to College Tuition Compare, the annual cost of in-state tuition, fees, books and living costs last year was nearly $19,000, and College Access & Success found the average Oklahoma student loan debt for the class of 2017 was nearly $26,000. Thanks to their parents’ diligence, Leslie and Kyle finished college debt-free in 2017.
“Saving more money is a popular new year’s resolution and I encourage Oklahoma families to make starting a college savings account a goal for 2019,” said State Treasurer Randy McDaniel, who also serves as board chair of OCSP. “There are nearly a million children under the age of 18 in Oklahoma, and less than 40,000 have OCSP accounts. We’d like to see that number grow so future generations of scholars will not have the stress of onerous amounts of debt after college.”
An OCSP account can be applied toward costs for tuition, fees, books, supplies and other equipment required for enrollment. Over the past two years, more than 25,000 beneficiaries from all 77 counties in Oklahoma have used OCSP accounts at schools nationwide. Nearly 5,200 beneficiaries have applied funds to out-of-state institutions like Stanford University, Harvard University, Dallas Baptist University, University of Texas and University of Florida. Accounts can also be used to pay tuition at K-12 schools, up to $10,000 a year, per student.
An OCSP account can be opened on behalf of a beneficiary with a minimum initial contribution of $100. Additional contributions can be made for as little as $25. OCSP contributions can be deducted from your Oklahoma taxable income up to $10,000 per year, or $20,000 for couples filing jointly with a five-year carryforward.
For more information about the Oklahoma 529 College Savings Plan visit www.ok4saving.org or call (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 direct their own 529 college savings accounts. The plan is managed by TIAA-CREF Tuition Financing, Inc. Introduced in March 2009, OklahomaDream 529 Plan is offered through financial advisors and is managed by Allianz Global Investors. As of December 31, 2018, combined assets in both plans totaled nearly $1 billion.
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.
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.
Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. 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.
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.
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