Oklahoma 529 maintains Bronze Morningstar Analyst Rating™, continues recognition among nation’s top 529 plans

published November 26, 2024

Oklahoma City (Nov. 26, 2024) — For the fifth consecutive year, Oklahoma 529 received a Bronze status by the Morningstar Analyst Ratings^TM. Morningstar reviewed 59 college savings plans, representing over 90% of the 529-industry's assets, and recognized only 32 plans as a Morningstar Medalist.

"Oklahomans should look no further given the well-rounded option is paired with the state’s generous tax deduction, up to $20,000 annually, if filed jointly," Morningstar said in its comments about the plan. Morningstar cited the plan’s "well-structured investment strategy" as a key reason for the Bronze rating.¹

Morningstar, one of the nation's top financial service companies, first upgraded Oklahoma 529 to Bronze status in November 2020, and the plan has held that rating ever since, with new 2024 rankings released October 29.² Oklahoma 529 marks its 25th year of existence in 2025.

"We're continually looking for ways to improve Oklahoma 529 and help families lower the costs of saving for lifetime learning decisions," Oklahoma State Treasurer Todd Russ said. "This high rating from Morningstar, one of the nation’s most respected investment research firms, emphasizes the solidity of our plan as a strong option for families looking to save for education expenses."

Treasurer Russ said Oklahoma 529 plans are easy to open and have a minimum starting contribution of $25. Investment expenses for Oklahoma 529 are less than half the average 529 plan, one-quarter of what an individual would pay for a broker-sold plan.³

In January 2024, Oklahoma 529 implemented a 50% reduction in the management fee, which is expected to save participating families over $1 million annually. Oklahoma 529 also offers perks such as no application fees, no cancellation fees, no commissions and no transfer fees. View 529 Fees & Expenses. These low fees reduce the cost of saving for college, which could mean more savings for college.

In addition to the Morningstar rating, SavingforCollege.com has assigned Oklahoma 529 its highest "Best" Rating for residents.⁴ Factors for the analysis include the attractiveness of the state tax deductions and credits and other state-specific incentives for resident account owners.

"We’re proud that Oklahoma 529 is consistently recognized among the nation’s best 529 plans,” Russ said. “We hope this recognition generates more confidence among Oklahomans and others using our plan to save for future education costs."

Oklahoma 529 funds can be used for more than just college tuition and expenses. They also can help pay for tuition and fees at Oklahoma CareerTech Centers and graduate and professional schools as well as for K-12 tuition up to $10,000 annually per student. Additionally, these funds can be used toward expenses associated with certified apprenticeship programs, concurrent enrollment and student loan repayment subject to a lifetime lime of $10,000 per individual.⁵

To learn more about the Oklahoma 529, its investment objectives, risks, charges and expenses see the Plan Description at oklahoma529.com before investing. Read it carefully. Prior to investing, 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. Consider the investment objectives, risks, charges and expenses before investing in Oklahoma 529. 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. If the funds are not used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and income taxes) may apply.

Footnotes

1. TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529.
2. ¹Megan Pacholok, OK529 Analysis, Morningstar, Oct. 29, 2024.↩
3. ²In an annual review (10/29/2024) of the largest 529 college savings plans (59 plans representing more than 90% of 529 assets), Morningstar identified 32 plans that stand out above the rest, assigning those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2024. 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 the 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.↩
4. ³ISS Market Intelligence 529 College Savings Quarterly Fee Analysis Third Quarter 2024.↩
5. ⁴Saving For College rates each state-sponsored 529 savings program annually by analyzing numerous factors for each plan. The 529 Rating represents an opinion of the overall attractiveness of a 529 plan to a potential saver. Ratings range from one cap (least attractive) to five caps (most attractive). Additionally, a “Resident Benefits” Rating is compiled, separate from the plan’s 5-Cap score, using a separate three-tier metric to help consumers easily evaluate the attractiveness of their state plan based on state tax deductions and credits and other state-specific incentives for resident account owners. Savingforcollege.com/529-plan-ratings↩
6. ⁵Withdrawals 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. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan. K-12 withdrawals are limited to $10,000 per year for K-12 tuition. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.↩

Media Contact:

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

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