Oklahoma 529 offers gifts that can last a lifetime, provide tax benefits

published November 27, 2023

Oklahoma City (November 27, 2023) — Oklahoma families looking for gifts this holiday season beyond the latest fads have a chance to give a gift that can last a lifetime with Oklahoma 529.

"In a world filled with tech gadgets and trendy toys, Oklahoma 529 offers families a unique holiday gift option that can grow with a child rather than being something a child outgrows by seasons end,” said State Treasurer Todd Russ. “Even better, the funds from Oklahoma 529 accounts can be used for nearly any education path chosen."

Russ said opening a new account from now through Dec. 15 also offers another advantage. New accounts can receive a $100 bonus when opened with $500 or more and recurring contributions of $100 or more per month are set up until 6/30/24. New accounts can get a $50 bonus when opened with $250 and recurring contributions of $50 or more per month are set up until 6/30/24.¹

Parents, grandparents, relatives or friends may open an Oklahoma 529 account on behalf of a beneficiary or contribute to an existing account using OK529 Ugift^®. With the average American planning to spend $923² on gifts this holiday season, it’s a good way to potentially give long-term benefits.

"Aside from being a great way to save for higher education, account contributions also can provide tax benefits to Oklahoma families," Russ said. "An Oklahoma 529 account can be a smart choice for Oklahomans that can help students and their families now and in the future."

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 and living expenses. Oklahoma 529 funds can also be used to help pay for 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.

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About Oklahoma 529

Introduced in April 2000, Oklahoma 529 has assisted more than 87,000 families across the state who have invested and used over $1 billion to cover education costs such as tuition, books, housing and fees. Oklahoma 529 was recently named a 2023 medalist by Morningstar, an investment research firm. Morningstar analysts called the plan, "A must-have for Oklahomans."

Footnotes

1. ¹Visit Oklahoma529.com/offer23 for terms and conditions. Promotion ends 12/15/23. Sponsored by Oklahoma 529.↩
2. ²Holiday Shoppers Poised to Spend Moderately This Season, November 1, 2023,
   https://news.gallup.com/poll/513563/holiday-shoppers-poised-spend-moderately-season.aspx↩
3. 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.
4. 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.
5. 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.
6. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.
7. Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.

Media Contact:

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

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