News & Press Releases
Oklahoma 529 College Savings Plan gives children a gift to treasure for their lifetime, parents a state tax deduction
Oklahoma City – As holiday shopping gets underway, State Treasurer Randy McDaniel is encouraging Oklahoma parents and grandparents to consider giving a gift that children won’t outgrow – a contribution to an Oklahoma 529 College Savings Plan account.
Consumers plan to spend 4 percent more on holiday gifts this season compared to previous years for an average of $1,047.83 per household, according to National Retail Federation’s Annual October Holiday Consumer Survey.1 While consumers are increasing their holiday budgets, 77 percent of consumers expect to return a portion of their holiday gifts in 2019, with nearly 20 percent planning to return more than half of their gifts, according to a survey conducted by Oracle Retail.2
This year, Oklahoma families can give the gift that won’t be returned. McDaniel, board chair for OCSP, said the benefits of supporting a child’s future education through college savings will last for years to come.
“There’s value in giving a thoughtful present to a child that provides entertainment and fuels their creativity,” McDaniel said. “Taking part of what families spend on gifts and instead contributing to an Oklahoma 529 Plan can make a big difference. It improves the likelihood of a child attending college and reduces future college debt.”
Manufacturers in the toy industry are struggling to keep the attention of children that quickly move from one toy to the next. According to a Global Toy News analyst, the average lifespan of a toy is only eight months before children start to lose interest.
McDaniel said OCSP contributions are a long-lasting gift that will help get young children excited about college early and also give Oklahoma taxpayers a state income tax deduction.
“As parents, we love to see a child light up with joy when they receive a new toy, but the gift of an Oklahoma 529 College Savings Plan will show that you have high expectations for them,” McDaniel said. “Even small contributions add up and provide Oklahoma families with a tax benefit.”
Parents, grandparents, relatives or friends who are U.S. citizens or permanent residents and at least 18 years old may open an OCSP account on behalf of a beneficiary, and the minimum initial contribution is only $100. Once an account is open, anyone can contribute, making an OCSP account a great gift idea for all family and friends.
The OCSP website, ok4saving.org/give, provides gift-givers with the option to make a contribution to an OCSP account through a check or with online banking information. Contributions to an Oklahoma 529 College Savings Plan may qualify for a state tax deduction up to $20,000 for joint files and up to $10,000 for single filers. Plus, taxpayers can carry forward larger gifts into the following year.
More information about opening an OCSP account can be found at www.ok4saving.org/give.
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 September 30, 2019, combined assets in both plans exceeded $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 Plan Description 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 Description 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. 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 Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529 College Savings Plan.
1:McGinty, Mary. “Holiday Shoppers Plan to Spend 4 Percent More This Year.” NRF, National Retail Federation, 24 Oct. 2019
2:Trendell, Amber. “Most Consumers Will Return Holiday Gifts This Year.” 2019 Retail Christmas Holiday Shopping and Return Trends, Oracle Retail Blog, 20 Sept. 2019