News & Press Releases
Edmond newborn’s college savings boosted by $5,529 through Oklahoma 529 College Savings Plan
OKLAHOMA CITY – One Edmond family has $5,529 toward their new baby’s future education expenses thanks to the Oklahoma 529 College Savings Plan’s 2020 Newborn Sweepstakes. Chenoa Barker-Charles and Jesse Charles along with their daughter Vera were randomly selected as the annual sweepstakes winner. Mercy Hospital Oklahoma City – where Vera was born – will also receive a donation of $1,529.
As existing Oklahoma 529 College Savings Plan (OCSP) account owners, Chenoa and Jesse already had established an OCSP account for their daughter before being named the winners of the Newborn Sweepstakes. The new parents said this award enhances their early college savings goals.
“We opened Vera’s existing account before she was born, knowing the importance and value of saving early for future education,” said Barker-Charles. “We are so thankful to have come across this opportunity in our info packet at the hospital. We feel confident that this will help us be prepared financially no matter where her future takes her.”
OCSP’s Newborn Sweepstakes encourages saving for higher education early, as accounts are designed to perform better long term, creating an additional incentive for parents or grandparents to start saving for a child’s education the moment they are born.
“Having a newborn is an exciting milestone in life,” said State Treasurer Randy McDaniel. “The first few years for the child are pivotal as parents plan for their future. I encourage all Oklahoma families to open and contribute to an OCSP account to help children achieve their educational goals.”
The Edmond family is the 12th family to win the annual statewide Newborn Sweepstakes. OCSP has awarded more than $66,000 to Oklahoma families through the sweepstakes, and OCSP has donated more than $18,000 to Oklahoma hospitals with the promotion.
This sweepstakes is sponsored by OCSP. Funds for prizes comes from the OCSP marketing budget. 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 open and manage their own 529 college savings accounts. The Plan is managed by TIAA-CREF Tuition Financing, Inc. As of March 31, 2021 assets in in the Plan exceeded $1.14 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.
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 carry forward. Limitations apply.1
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 taxpayer, 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. 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. Consult your legal or tax professional for tax advice. TIAA-CREF Tuition Financing, Inc. (TFI), Plan Manager.
For more information, contact:
Tim Allen, Treasurer’s Office, (405) 522-4212
Addie Plank, Koch Comm, (405) 570-2959