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Saving for education is an investment in a child’s future. On average, today’s college graduates will earn almost double the income compared to those with only a high school diploma. What’s more, the occupations available to college graduates provide more benefits, from healthcare insurance to retirement savings. Plus, college graduates tend to be more satisfied with their jobs and statistically live an average of seven years longer than non-college graduates.
The reasons for college are clear, but finding a way to pay for it may not be. However, starting early with an effective savings strategy can make the opportunity of college a reality. The Oklahoma 529 College Savings Plan (OCSP) offers an affordable, tax-advantaged way to save, and it’s the only direct-sold plan with an Oklahoma income tax deduction.
Take some time to read the enclosed enrollment brochure to find out more about the benefits of OCSP. You can enroll online at ok4saving.org.
For more information about OCSP, visit ok4saving.org or contact one of our college savings specialists at 877 654-7284.
Sincerely,
Randy McDaniel Oklahoma State Treasurer Chair, Oklahoma 529 College Savings Plan
Randy McDaniel Oklahoma State Treasurer Chair, Oklahoma 529 College Savings Plan
“Invest in your child and our state’s future!”
OCSP AT A GLANCE
1-877-654-7284 ok4saving.org
Higher education is an important ingredient for success. The Oklahoma 529 College Savings Plan provides an affordable, tax-advantaged way to save:
• State income tax deduction only offered with the Oklahoma 529 College Savings Plan.
• Low minimum contributions allows you to open an account with as little as $25 or any amount if contributing by payroll direct deposit.
• High maximum account balance allows you to invest up to $300,000 for all accounts in the Plan per beneficiary.
• Tax-free withdrawals from OCSP can be used to pay for tuition, certain room and board costs, computers and related technology expenses as well as fees, books, supplies, and other equipment at a post-secondary school (i.e. college, technical college or university).
• Up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal income tax if used for tuition expenses at a public, private or religious elementary, middle, or high school.1
• Choice of schools nationwide and abroad.
• Ability to transfer to another eligible beneficiary if your designated beneficiary decides not to attend college or has other funding options.
• Low-cost plan management through TIAA-CREF Tuition Financing, Inc. (TFI), a leader in 529 college savings plan management, so more of your contribution dollars go toward future college expenses.
• Investment options that vary in strategy and degree of risk, allowing you to select an option or combination of options to fit your life situation, risk tolerance and college savings goals. For additional information about the OCSP investment options, visit ok4saving.org/research.
1-877-654-7284 ok4saving.org
DISCIPLINE LEADS TO ACHIEVING GOALS
Violin lessons are always the highlight of Kate’s week. She doesn’t mind the discipline required to achieve her goals. At home, Kate’s parents also teach discipline about savings, matching a portion of her contributions to her home-made “bank” and encouraging her to put a percentage of birthday and other gift money toward her college savings account.
Children can participate in saving for their own future. Starting the savings habit today can mature into your child’s financial security in the future.
WHAT IS A 529 COLLEGE SAVINGS PLAN? In the same way a 401(k) offers tax advantages to help you save for retirement, a 529 plan helps
you save for college expenses. Section 529 refers to the federal tax code allowing states to sponsor
tax-favored higher education savings programs to help families save for college and technical college
more easily and achieve their higher education savings goals.
WHAT MAKES THE OKLAHOMA 529 COLLEGE SAVINGS PLAN (OCSP) UNIQUE? Individual taxpayers may deduct up to $10,000 in OCSP contributions each year from their Oklahoma
adjusted gross income, and taxpayers filing jointly may deduct up to $20,000. Plus, you can carry
forward larger gifts into the following year. Limitations apply.2 Additionally, plan earnings are 100%
free from federal and state taxes when used for qualified education expenses.
What’s more, contributions to OCSP may reduce the taxable value of your estate because of
federal estate and gift tax benefits. Please consult your tax advisor about your own situation.
THE ADVANTAGES OF STARTING EARLYOnce a child is nine years old, half of your time to save for college has passed! The more you invest and
the earlier you start, the more opportunity your money has to grow. Take a look at the chart to see the
growth potential of your investment over the course of 18 years.
Assumes initial contribution of $5,000 and an annual investment return of 6%.
This hypothetical example illustrates the future values of different regular monthly investments for different time periods and assumes an annual investment return of 6% with an initial investment of $5,000. It is presented for illustrative purposes and does not reflect actual performance or predict future results of OCSP and does not reflect any deduction for expenses or taxes or the benefits of any Oklahoma income tax deduction that may apply. If such fees or charges were taken into account, returns would have been lower. With any long-term investment, investment return may vary. Such automatic investment plans do not assure a profit or protect against losses in declining markets. Account values will fluctuate with market conditions and the specific Investment Options that are selected.
$100,000
60,000
20,000
Years of Accumulation
Monthly Contribution■ $50 ■ $100 ■ $200
06 Years 12 Years 18 Years
$91,954
$52,084
$24,242
$53,319
$31,169
$15,701
$34,001
$20,711$11,431
SAVING IS A SMART GAME PLAN
Curtis was born to play basketball. In fact, when it came to college, this passion and talent helped him get some scholarship offers. But they weren’t enough to cover tuition and living expenses. Fortunately, both Curtis’ parents and grandparents opened Oklahoma 529 College Savings Plan accounts for him early on, contributing each month. It’s what turned the dream of college into a reality for Curtis.
When you add the power of compounding to OCSP’s tax-deferred earnings, tax-free qualified withdrawals
and low fees, your investment has a stronger chance to grow to help achieve your education savings goals.
THE BENEFITS OF TAX-FREE GROWTH POTENTIAL
$80,000
60,000
40,000
20,000
0
$46,788
529 Account Taxable Account
$54,958 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 or the benefits of any Oklahoma state income tax deduction that may apply.
LET OCSP BE THE FINANCIAL FOUNDATION FOR BUILDING YOUR LOVED ONE’S EDUCATIONAL FUTURE!
Opening an account and making contributions are simple.
1-877-654-7284 ok4saving.org
Open an Account Online: ok4saving.org Select Open an Account on the OCSP home page.
You may also order an Enrollment Kit including an account application at ok4saving.org/help or by calling OCSP at 1.877.654.7284.
SELECT THE CONTRIBUTION METHOD THAT WORKS BEST FOR YOU:
• Mail a personal check
• Set up a Recurring Contribution from
a checking or savings account
• Contribute occasionally online from a
checking or savings account by establishing
an Electronic Funds Transfer (EFT)
• Set up bill pay with your bank
• Set up payroll direct deposit deduction
(if allowed by your employer)
• Roll over money from another 529 plan
or Coverdell Education Savings Account
into your OCSP account
1 State tax treatment of withdrawals for K-12 tuition expense will vary depending on state law, and may include recapture of tax deductions received from the original state as well as penalties. The tax reform legislative changes were on a federal level. If you are not an Oklahoma resident, please consult with a tax or legal advisor.
2 To learn more about the Oklahoma 529 College Savings Plan, its benefits, investment objectives, risks and costs, read the Plan Description. 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. 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. 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.
All social media platforms are managed by the State of Oklahoma.
1-877-654-7284 ok4saving.org
For additional Plan and investment option information, determining your risk tolerance, calculating
investment targets to achieve your college savings goals, comparing savings options, legacy and estate
planning and much more, visit our website at ok4saving.org.
Stay connected with the OCSP by visiting our social media sites.
1135557 A12466 (05/20)
