Oklahoma 529 College Savings Plan (OCSP)

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Treasurer McDaniel: Tax Savings still available for Oklahomans

Mar 30, 2021

OKLAHOMA CITY – With the tax filing deadline approaching, State Treasurer Randy McDaniel is encouraging Oklahomans to take advantage of a 2020 state income tax deduction by contributing to the Oklahoma 529 College Savings Plan.

“As families file their taxes, it’s important to remember the many benefits of saving for college,” said McDaniel, board chair. “The Oklahoma 529 College Savings Plan has excellent investment choices, a low minimum contribution requirement, and offers a state income tax deduction. Plus, the funds can be used at colleges, universities and technology centers in Oklahoma and across the nation.”

Contributions made to a new or existing Oklahoma 529 College Savings Plan (OCSP) account through the April 15 tax filing deadline can be claimed as a 2020 state tax deduction. Limitations apply.1

According to the Federal Reserve, the average college debt a student graduates with is more than $32,000.2 On average, it takes over 18 years to pay off student loans, according to CNBC.3

“Instead of spending years paying off student loans, the resources could be better used for buying a home or starting a business,” said McDaniel. “When Oklahomans help prepare their children and grandchildren for the cost of higher education, they are making a positive impact on their lives.”

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.

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
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 December 31, 2020, assets 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.

1To learn more about the Oklahoma 529 College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Plan Description at ok4saving.org. Read it carefully. Oklahoma residents can reduce their state taxable income by up to $20,000 if married filing jointly ($10,000 filing single) from contributions made into an Oklahoma 529 College Savings Plan. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school can be withdrawn free from federal tax and Oklahoma income tax. If you are not an Oklahoma tax payer, you should talk to a qualified advisor about how tax provisions affect your circumstances. 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. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529 College Savings Plan. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.

2Song, Justin. (2021, Jan. 4). Average Student Loan Debt in America: 2019 Facts & Figures. Retrieved from https://www.valuepenguin.com/average-student-loan-debt#:~:text=Average%20Student%20Loan%20Debt%20in%20The%20United%20States,outstanding%20in%20student%20loan%20debt.

3DeMatteo, Megan. (2020, Nov. 25). This is the average age when people finally pay off their student loans for good. Retrieved from https://www.cnbc.com/select/how-long-it-takes-to-pay-off-student-loans/#:~:text=With%20that%20timeline%20in%20mind,26%20and%20ending%20at%2045.

Media Contact:
Tim Allen, Treasurer’s Office, (405) 522-4212
Addie Plank, Koch Comm, (405) 570-2959, aplank@kochcomm.com

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