Get to know Oklahoma 529
How Our 529 Plan Works
No matter your child’s age, the best time to open an Oklahoma 529 is “today.” Because the sooner you start, the more you can take advantage of compound earnings and unique tax benefits.
Start early to make the most of your savings
Saving early has the potential to deliver compound earnings over a longer period of time.
529 fact
Help grow your savings with gifts from friends and family using Ugift®.
Advantages of Starting Early
See how your savings might grow if you start with $5,000 and continue to save $100 a month for 8, 12 and 18 years.
- Earnings
- Subsequent Contributions
- Initial Contribution
Save for 8 years
- Earnings: 6% Annual Return
- Subsequent Contributions: $100 per month
- Initial Contribution: $5,000 Lump Sum
- Total savings growth over time: $20,559
Save for 12 years
- Earnings: 6% Annual Return
- Subsequent Contributions: $100 per month
- Initial Contribution: $5,000 Lump Sum
- Total savings growth over time: $31,520
Save for 18 years
- Earnings: 6% Annual Return
- Subsequent Contributions: $100 per month
- Initial Contribution: $5,000 Lump Sum
- Total savings growth over time: $53,584
Graph Footnotes
- This chart assumes a $5,000 lump sum investment, a $100 monthly investment and 6% annual rate of return compounded annually. The calculations are for illustrative purposes only, and the results are not indicative of the performance of any investments. The calculations do not reflect any plan fees or charges that may apply. If such fees or charges were taken into account, returns would have been lower. Such automatic investment plans do not assure a profit or protect against losses in declining markets. Account value in the investment options is not guaranteed and will fluctuate with market conditions.
How much should you save towards your child’s tuition?
Get a quick estimate of approximately how much you’ll need to save using our calculator tool.
Estimate your savings
Unique Tax Benefits
When you pay fewer taxes, you can potentially earn more and grow your account faster—giving your child or grandchild an even bigger head start. Oklahoma 529 offers unsurpassed income tax benefits.
- Individual taxpayers may deduct up to $10,000 in Oklahoma 529 contributions each year from their Oklahoma adjusted gross income, and taxpayers filing jointly may deduct up to $20,000. Carry forward larger amounts up to five years.
- Investment earnings are 100% free from federal and state taxes when used for qualified education expenses.1
See the Oklahoma 529 Plan Description for more details on our unique tax benefits.
Who’s Eligible?
You, your friends, family, neighbors, and more…basically any citizen or taxpayer over 18 can open or contribute to Oklahoma 529. Here are the details.
Account owners
- At least 18 years old with a valid Social Security Number (SSN) or taxpayer ID number
- Person opening the account can designate a successor account owner in the event of their death
- Certain trusts, estates, and corporations can also open an account with a valid taxpayer ID number*
Footnotes
- *Additional restrictions may apply; please refer to the Plan Description for details.↩
Beneficiaries
- The beneficiary is the student and only needs a valid SSN or taxpayer ID number
- It can be your child, grandchild, even you—and you don’t need to be related to the beneficiary
- Only one beneficiary to an account, except when an entity creates a general scholarship account
Contributors
- Anyone can help pay for college with our easy and secure Ugift platform
- Gifting may also provide advantages for estate and legacy planning; please consult your tax advisor
An account can be opened in anyone’s name (like a parent, grandparent, or family friend) and easily transferred later.
Qualifying Expenses
With Oklahoma 529, you have full control over how to use your funds. Here are the wide variety of qualified education expenses that can support your child in any path they choose to take:
- Tuition at any accredited private or public college or university, community college, CareerTech, graduate schools, and professional schools across the US and many abroad
- Certain room and board related expenses
- Fees, books, supplies and other equipment needed for enrollment and attendance
- Computers and related technology such as internet access fees, software or printers
- Certain additional enrollment and attendance costs for beneficiaries with special needs
- Pay for K-12 tuition - up to $10,000 annually per student at a public, private or religious elementary, middle, or high school2
- Pay for apprenticeship expenses—Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act2
Funds can also be used in two other helpful ways:
- Repay student loans—up to a $10,000 lifetime limit per individual (including principal and interest on any qualified education loan)2
- Transfer additional/leftover funds to another eligible beneficiary such as another child, grandchild, or even yourself
Please see the state tax treatment of withdrawals section in the Plan Description for more information.
See plan details for additional information
Have more questions?
No. Your Oklahoma 529 funds can be used at any accredited university in the country—and even some abroad. This includes public and private colleges and universities, CareerTech, community colleges, graduate schools and professional schools and costs associated with apprenticeships. In addition, up to $10,000 annually can be used toward K-12 tuition (per student) from all 529 plans and student loan repayment (lifetime limit).1 For a list of qualifying expenses and the state tax treatment of withdrawals for these expenses, view the Plan Description.
Footnotes
- 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.
Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan.↩
With your Oklahoma 529, you’re never locked in. You’ll always have access to several options for this money:
- Your funds can be used to pay for a variety of eligible education expenses, including at any accredited college, university, CareerTech, community college or postgraduate program in the United States—and even some schools abroad. In addition, up to $10,000 annually can be used toward K-12 tuition (per student) from Oklahoma 529.
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
- If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the “Additional Tax”). See the Plan Description for more information and exceptions.
- If you just want the money back, you can withdraw the funds at any time. You’d just pay the applicable taxes and penalty on earnings.
- Effective January 1, 2024, Account owners may roll money from an Oklahoma 529 account to a Roth IRA for the benefit of the 529 plan account beneficiary without incurring federal income tax or penalties (state tax treatment varies). For the rollover to be treated as a non-taxable event, certain conditions apply as referenced in Am I eligible to rollover funds from my 529 plan account to a Roth IRA?1
Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So if your child changes their mind down the road, your savings will still be available.
Footnotes
- 1The TIAA group of companies and Oklahoma 529 do not provide legal or tax advice. Please consult your tax or legal advisor to address your specific circumstances.↩
Your Oklahoma 529 account can be used at colleges, universities, CareerTech, community colleges, graduate or postgraduate programs, apprenticeships and more. Contact your school to determine whether it qualifies as an eligible educational institution or use the Federal School Code Search tool on the Free Application for Federal Student Aid (FAFSA) website.
There are no sales charges, startup or maintenance fees associated with Oklahoma 529 accounts. For details on total annual asset-based fees, comprised of the underlying investment expenses for each investment option, the plan manager fee and state administration fee, review the individual investment options.
