News & Press Releases
Treasurer McDaniel awards Tax Day Babies with college savings plan funds
OKLAHOMA CITY – An Oklahoma City family has two great reasons to celebrate on Tax Day, a day that many Americans don’t look forward to. Cecilia and Sonny welcomed the birth of their son on Monday morning. Hours after the birth of Michael, he already has a plan to begin saving for college.
As part of the Oklahoma 529 College Savings Plan’s fifth annual Tax Day Baby event, the first qualifying baby born at INTEGRIS Baptist Medical Center on April 15, the deadline to file federal income taxes, was declared the Tax Day Baby. Michael was born Monday morning, and he is the beneficiary of $1,529 toward an Oklahoma 529 College Savings Plan (OCSP) account.
Oklahoma State Treasurer Randy McDaniel congratulates the family on the birth of their new baby, and for now having a college savings plan.
“The birth of a child is a very special day,” said McDaniel, board chair for OCSP. “Starting to save for college when children are young is ideal because accounts have many years to grow. Contributions made to an Oklahoma 529 College Savings Plan account qualify for deduction on your state income taxes. It’s a great way to save for college and receive tax savings.”
Cecilia and Sonny are already ahead of most families in the United States. In 2017, only 20 percent of parents between the ages of 30-59 reported they were saving for their children’s college education.
Michael is the couple’s fourth child. Cecilia said the $1,529 contribution to an OCSP account is a great start toward Michael’s education.
“My point is to push m children toward a career and toward their future,” said Cecilia. “Michael is a lucky baby on Tax Day to receive this.”
OCSP recognized a second Tax Day Baby in Tulsa on Monday. Abigail Bilyk was the first baby born at Tulsa’s St. John Medical Center at 4:54 a.m. Shelby and Mike Bilyk’s new daughter is also the recipient of $1,529 toward an OCSP account.
Other families expecting a new baby this year also have the opportunity to get a jump start on saving for college. OCSP’s annual Newborn Sweepstakes will award one Oklahoma baby born in 2019 $5,529 toward an OCSP account. The hospital where the baby is born will also receive $1,529. Parents and grandparents have until April 14, 2020, to enter their 2019 newborn. For official rules, prize details and to enter the sweepstakes, go to www.ok4saving.org/newborn.
Funds contributed to OCSP accounts are typically eligible for an Oklahoma income tax deduction. Earnings on the contributions can be withdrawn tax-free when the funds are used for a variety qualifying expenses at accredited schools around the country. Funds can also be used for tuition at private K-12 schools.
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. Funding for OCSP prizes comes from the marketing budget of the Oklahoma 529 College Savings Plan; no state funds are used.
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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