Oklahoma 529 Decreases Fees

published January 31, 2024

OKLAHOMA CITY (Jan. 31, 2024) — State Treasurer Todd Russ announced a 50-percent reduction in management fee for Oklahoma 529. This reduction, the largest in the state tax-advantaged education savings plan’s nearly 24-year history, is expected to save Oklahoma families participating in OK529 accounts over $1,000,000 annually.

"Oklahoma 529 is the flexible choice for education savings, from kindergarten all the way through a student's higher education journey," Russ said. "With this significant reduction in management fees, Oklahomans will keep more money in their accounts to continue growing until it’s needed for education expenses."

Oklahoma 529 is the state's official education savings plan and has helped Oklahomans save money for education since it began in April 2000. The program management fee has been reduced by 50 percent. The new fee is 0.1 percent on account balances, down from 0.2 percent. The plan has no sales charges, enrollment fees or annual account maintenance fees.

Oklahoma taxpayers can reduce their state taxable income by up to $20,000 if married filing jointly ($10,000 filing single), from contributions made into Oklahoma 529. Plus, taxpayers can carry forward larger gifts into future years. Any earnings are tax-free if used for qualified higher education expenses such as tuition, books, computers and living expenses. Oklahoma 529 funds can be used to help pay for college and university, CareerTech, professional and graduate school, K-12 tuition up to $10,000 annually per student and apprenticeship costs for programs registered and certified with the Secretary of Labor under the National Apprenticeship Act.

Treasurer Russ also noted that Oklahoma 529 maintained its medalist rating with Morningstar Analyst Rankings for the fourth year in a row.

"As a leading investment research firm, Morningstar understands the $20,000 state income tax deduction helps makes it a 'must-have' for Oklahomans," Russ said.

Visit Oklahoma529.com to learn more about Oklahoma 529 and ways to open an account.

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Footnotes

1. In an annual review (11/2/2023) of the largest 529 college savings plans (54 plans representing 90% of 529 assets as of August 2023), Morningstar identified 34 plans that stand out above the rest, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2023. These plans offer a well-researched asset-allocation approach, a robust process for selecting and monitoring underlying investments, a well-resourced and experienced investment team, stable and engaged oversight from the state and low fees. Investors in what Morningstar analysts consider the best 529 plans should be well-positioned for the future. The four key pillars used by Morningstar to evaluate 529 college savings plans include – Process, People, Parent, and Price. For more information about Morningstar’s overview of Oklahoma 529, go to Morningstar.com. TIAA-CREF Tuition Financing, Inc. compensates Morningstar for the ability to quote these ratings in public communications. Past performance does not predict future results. Source: Morningstar.com. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions.
2. To learn more about the Oklahoma 529, its investment objectives, risks, charges and expenses see the Plan Description at oklahoma529.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. 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. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for Oklahoma 529.
3. Withdrawals 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.
4. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.

Media Contact:

Shaundra North | Koch Comm | snorth@kochcomm.com | (405) 219-7712

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