Oklahoma 529 maintains Bronze Morningstar Analyst Rating^™

published November 21, 2022

Oklahoma City (Nov. 21, 2022) — Oklahoma 529 has again been awarded Bronze status by the Morningstar Analyst Ratings™. This places the state plan on the list of Morningstar medalists for 529 educational savings plans for a third straight year.

“Oklahoma 529 delivers a well-designed investment menu,” Morningstar said in its comments about the plan. “The state’s tax deduction of up to $20,000 annually, if filed jointly, makes it a must-have for Oklahomans.”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,² with new 2022 rankings being released Wednesday. Formerly known as the Oklahoma 529 College Savings Plan, Oklahoma 529 is in its 22^nd year of existence.

Oklahoma 529 plans are easy to open and have a minimum starting contribution of $25. There are a number of excellent investment options, including an enrollment-year option that features an investment mix corresponding to a child’s expected year of college enrollment. Morningstar cited the plan’s “competitive price” as a key reason for the Bronze rating.

“We have continually strived to improve the Oklahoma 529 plan, and this recognition from Morningstar is evidence we are succeeding,” Oklahoma State Treasurer Randy McDaniel said. “Morningstar is one of the nation’s most respected investment research firms. This high rating should generate 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 apprenticeships, concurrent enrollment and student loans.³

“Whatever educational path a student chooses, Oklahoma 529 is an outstanding savings vehicle to help families pay for the related expenses,” McDaniel said.

About Oklahoma 529

Introduced in April 2000, Oklahoma 529 has served more than 81,000 students in paying for higher education tuition and expenses. As of September 30, 2022, Oklahoma families have redeemed more than $876.7 million from Oklahoma 529 accounts.

Footnotes

1. To learn more about Oklahoma 529, its investment objectives, tax benefits, risks and costs, please see the Plan Description at oklahoma529.com. Read it carefully. 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.
2. TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Oklahoma 529.
3. ¹Megan Pacholok, OK529 Analysis, Morningstar, Nov. 2, 2022.↩
4. ²In an annual review (11/2/2022) of the largest 529 college savings plans (54 plans representing 93% of 529 assets), Morningstar identified 34 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2022. These plans offer investment options that Morningstar expects will collectively outperform and exhibit some combination of the following attractive features: a well-researched asset-allocation approach, a robust process for selecting underlying investments, a well resourced and experienced investment management team, strong, stable and engaged oversight from the state and low fees. 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.↩
5. ³Withdrawals 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.↩

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

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