Oklahoma 529 College Savings Plan (OCSP)
Tax time

Save for college. Save on taxes.

Contribute now to save on your taxes.

More money for their education could mean more money in your wallet. See the difference these tax advantages can make over time in the table below.

Benefits of Tax-Free Growth: Taxable = $46,788, Tax-Free = $54,958 over 18 years

This example assumes an initial investment of $5,000, monthly contributions of $100, and a 6% annual rate of return over 18 years. The taxable account assumes a 28% federal and 5% state tax rate. The illustration is for illustrative purposes only and does not represent the performance of any specific portfolio.

Federal Income Tax Benefits

As a 529 Plan, OCSP offers important income tax benefits. Although contributions are not deductible on your federal tax return, any investment earnings can grow tax-deferred, and distributions to pay for the beneficiary’s college costs come out federally tax-free.

State Income Tax Information

In addition to federal tax benefits, there are state tax benefits as well. For OCSP, tax treatment is as follows:

Contributions to the Program are generally tax deductible up to $10,000 per year for a single return and $20,000 per year for a joint return. Any contribution in excess of this amount may be deducted over the following five tax years. Limitations apply.1

Earnings accrue free of Oklahoma income tax. While qualified withdrawals are not subject to Oklahoma income tax, non-qualified and federally taxable withdrawals are included in income and subject to the tax. Oklahoma tax benefits related to the OCSP are available only to Oklahoma tax payers. You should talk to a qualified advisor about how Oklahoma tax provisions affect your circumstances.

Withdraw Funds Tax-Free for College Expenses

Tuition, room and board, books, computers and more—funds in your OCSP 529 plan account aren’t taxed when spent on qualified expenses. (And they can be used at nearly any accredited university, college or vocational school!)

Estate Tax Planning Benefits

There’s another tax advantage unique to the 529 plan. There’s no federal gift tax on contributions up to $15,000 per year for single filers and $30,000 for married filers. There’s even an option to gift amounts up to $75,000 for single filers and up to $150,000 for married filers if pro-rated over 5 years. This means you could make a one-time gift equivalent to the 5 year amount and it could all qualify for the federal gift tax exclusion. Consult your tax advisor.

1Please refer to the Plan Description at ok4saving.org prior to investing for details on risk, tax benefits, charges and expenses and whether your home state offers tax or other benefits such as financial aid, scholarship funds, or protection from creditors for investing in its own 529 plan. 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 Tuition Financing, Inc. (TFI), Plan Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529 College Savings Plan.