News & Press Releases
Treasurer McDaniel encourages families to add college savings to holiday wish list
OKLAHOMA CITY — The holiday season is in full swing, and with an increased shift to online shopping expected this year, State Treasurer Randy McDaniel is encouraging all Oklahomans to consider opening or gifting to their child or grandchild’s Oklahoma 529 College Savings Plan account at Oklahoma529.com.
According to Forbes, online holiday shopping is expected to increase by 25-35% from November 2020 to January 2021 and around 62% of adult shoppers are expected to do their holiday shopping online.1
“OCSP makes it easy to contribute online,” said McDaniel. “Oklahoma parents and grandparents can create or add to an account through the website, increasing their loved ones’ opportunities to attend college and reduce future debt.”
And now until the end of the year, any OCSP account created with $25 or more with recurring contributions of $25 or more set up for at least 3 months will receive a $25 match.2
Even before the COVID-19 pandemic, the student loan debt crisis was only growing. Now, according to CNBC, the student loan balance is expected to increase to $2 trillion by 2022 with one in four borrowers behind on payments already.3
“As we work to address the growing student loan debt problem, it is crucial for families to begin saving for their child’s future education now,” added McDaniel. He also noted that the less student loan debt graduates have to pay, the easier it becomes to start a business or buy a home.
Parents, grandparents, relatives or friends who are U.S. residents and are at least 18 years old may open an OCSP account on behalf of a beneficiary, and the minimum initial contribution is only $25. Once an account is open, anyone can contribute, making an OCSP account a great gift idea for all family and friends.
Contributions to an Oklahoma 529 College Savings Plan may qualify for a state tax deduction up to $20,000 for joint filers and up to $10,000 for single filers. Plus, taxpayers can carry forward larger gifts into subsequent years. Limitations apply.4
For more information about the Oklahoma 529 College Savings Plan or to open an account, go to www.oklahoma529.com 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 open and manage their own 529 college savings accounts. The Plan is managed by TIAA-CREF Tuition Financing, Inc. As of September 30, 2020, assets in in the Plan exceeded $1.1 billion.
Any OCSP earnings are federal and Oklahoma income tax free when used for higher education expenses such as tuition, living expenses, books, supplies and fees. Funds may be used at most private or public universities, colleges or career technology centers, nationwide. In addition, up to $10,000 per year may be used for tuition at private elementary and secondary schools.
1Danziger, Pamela. (2020, Sept. 27). E-Commerce Sales Will Explode This Holiday Season, Putting Retailers’ Online Strategies To The Test. Retrieved from https://www.forbes.com/sites/pamdanziger/2020/09/27/e-commerce-will-explode-this-holiday-and-put-retailers-online-strategies-to-the-test/#212da3eb62f1
2Visit ok4saving.org/offer for terms and conditions. Promotion ends 12/31/2020. Sponsored by the Oklahoma 529 College Savings Plan.
3Nova, Annie (2020, June 27). They were struggling to repay their student loans before the pandemic. Now it’ll get worse. Retrieved from https://www.cnbc.com/2020/06/27/how-covid-19-has-made-the-student-loan-crisis-even-worse.html
4To learn more about the Oklahoma 529 College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Plan Description at oklahoma529.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. If the funds aren&requo;t used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529 College Savings Plan.
Tim Allen | Treasurer’s Office | (405) 522-4212
Addie Plank | Koch Communications | firstname.lastname@example.org | (405) 570-2959