When it comes to college savings, many parents think they can’t save enough to make a difference, they won’t choose a smart investment, or it’ll come down to a choice between paying for college or retirement. First things first — take a deep breath. It’s not about paying for everything — it’s about saving what you can. Next, know that you’re not alone in this. There’s a smart way to do it affordably and conveniently with the Oklahoma 529 College Savings Plan (OCSP).
The Cost of College Shouldn’t Keep You Up At Night
Yes, college tuition costs are far outpacing inflation, and yes this is a big concern for most parents. But there’s good news: the OCSP can offset these costs. If you’ve got $25 and a spare 15 minutes, you could open an account today. Since your account can grow tax deferred, you’ll potentially save more over time, so the sooner you start the better.
OCSP Gives You More Choice
Choose from a variety of investments that fit your timeline and investment goals, including easy, Enrollment Year Investment Option, an all-in-one portfolio series, intended for those saving for college. The allocation automatically shifts from aggressive to conservative investments as your child approaches college age. Savings can be applied to any accredited college or university across the country and abroad, technology centers, professional and graduate schools and even apprenticeships, K‑12 tuition and student loan repayment.1 Make qualified withdrawals free from tax on not just tuition, but certain room and board, books, computers and related technology expenses, equipment and supplies.
Don’t Choose Between College and Retirement
Many parents worry they’ll need to make a choice between retirement and their child’s education. They understandably feel like making sure their child receives a college education should be the priority. Really you should save for both. Most parents can’t pay for all of college, so just start small and save steady. With the OCSP you can start for a little as $25, and keep feeding your retirement nest egg. Also keep in mind there are many smart ways to reduce the cost of higher education before you even spend a dime.
1Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, registered apprenticeship programs, and student loans can be withdrawn free from federal and Oklahoma income tax. If you are not an Oklahoma taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances.
K‑12 withdrawals are limited to $10,000 per year for K‑12 tuition. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan.