Oklahoma 529 College Savings Plan (OCSP)

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Oklahoma 529 College Savings Plan investors see fee cut

Account owners expected to save $360,000 annually
May 11, 2017

OKLAHOMA CITY — Oklahomans saving for college through the Oklahoma 529 College Savings Plan (OCSP) will see a greater percentage of their contributions invested for future higher education expenses as plan manager reduces fees by 14 percent.

The fee reduction went into effect on May 11 and could save OCSP account owners a combined total of approximately $360,000 annually. The announcement was made today by State Treasurer Ken Miller, chair of the Oklahoma 529 College Savings Plan.

Miller said the plan’s program management fee was reduced from 0.35 percent to 0.30 percent by TIAA-CREF Tuition Financing Inc. (TFI), one of the nation’s leading 529 plan providers, because assets in the plan reached $750 million for more than 90 consecutive days.

“The fee reduction is great news for Oklahoma families who want to save for a college education,” Miller said. “What was already a great value continues to get better. OCSP account holders will see more of their hard-earned money invested toward their college savings goals. The fee reduction will help Oklahomans pursue their dreams, improve their quality of life and help their children and grandchildren start out on solid financial footing.”

In October 2010, OCSP reduced the program management fee from 0.65 percent to 0.40 percent. OCSP last enacted a fee reduction in September 2014, reducing the program management fee from 0.40 percent to 0.35 percent.

“In less than seven years, the OCSP program management fee has been more than cut in half, while the amount Oklahomans are saving for college has more than doubled,” Miller said. “More Oklahomans are recognizing the importance of planning for the future and saving for college, which can only positively impact the future of our state.”

In addition, Miller said, the contract negotiated with TIAA-CREF Tuition Financing, Inc. includes one more potential fee reduction when total funds invested in the OCSP reach $1 billion.

“It’s no small achievement that Oklahomans have saved over $750 million dollars dedicated to higher education expenses,” said Chris Lynch, President of TIAA-CREF Tuition Financing, Inc. “Since the plan’s inception in 2000, more than $386 million has been withdrawn to pay for high education-related expenses on behalf of almost 19,000 students (as of 2/28/17). These statistics demonstrate the success of OCSP over the past 17 years and we look forward to future success as OCSP focuses on achieving the milestone goal of $1 billion in college savings assets.”

About the OCSP

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.

Any earnings in an OCSP account are federal and Oklahoma income tax-deferred, and distributions are also federal and Oklahoma income tax-free when qualified withdrawals are made to fund an array of student expenses at most institutions of higher learning. Funds may be used at virtually any private or public university, college or career technology center nationwide.

A detailed infographic with information about who is saving in OCSP can be found here:

infographic

(A PDF version of the infographic is available here.)

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 for investing in its own 529 plan. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. TIAA-CREF Tuition Financing, Inc., Program Manager.

Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.

Account value in the Investment Options is not guaranteed and will fluctuate based upon a number of factors, including general market conditions.

TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Oklahoma College Savings Plan.

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