Oklahoma 529 College Savings Plan Slashes Fees
Twenty-percent reduction to save OCSP account owners $500,000 annually
published November 15, 2021
Oklahoma City – State Treasurer Randy McDaniel today announced a 20-percent reduction in the management fee for the Oklahoma 529 College Savings Plan (OCSP). This reduction is expected to save Oklahoma families owning OCSP accounts more than $500,000 per year.
“The state’s 529 plan is a great way for Oklahoma families to save for future educational expenses, whether a child’s path is a comprehensive university or a technical institution,” said Treasurer McDaniel. “The fee decrease means more money will remain invested until it’s needed for their child’s education.”
OCSP is Oklahoma’s official direct-sold 529 college savings plan. It is managed by TIAA-CREF Tuition Financing, Inc. and currently has more than 62,000 accounts as of Sept. 30, 2021. The program management fee has been reduced by 20 percent. The new fee is 0.2 percent on account balances, down from 0.25 percent. The plan has no sales charges, enrollment fees or annual account maintenance fees.
3. This is the second consecutive year that OCSP earned this designation.
“Morningstar is a leading investment research firm,” said McDaniel. “Being named Best in Class provides more confidence for Oklahomans participating in the plan as they continue to make it an important part of financing a higher education.”
Visit ok4saving.org to learn more about the Oklahoma 529 College Savings Plan and ways to open an account.
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About the OCSP
Introduced in April 2000, the Oklahoma 529 College Saving Plan (OCSP) is Oklahoma’s direct-sold 529 college savings plan. It is designed for families who want to open and manage their own 529 college savings accounts. The Plan is managed by TIAA-CREF Tuition Financing, Inc. As of September 30, 2021 assets in the Plan exceeded $1.19 billion.
Any OCSP earnings are federal and Oklahoma income tax free when used for higher education expenses such as tuition, living expenses, books, supplies and fees. Funds may be used at most private or public universities, colleges or career technology centers, nationwide. In addition, up to $10,000 per year may be used for tuition at private elementary and secondary schools.
- 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private or religious elementary, middle, or high school, registered apprenticeship programs, and student loans can be withdrawn free from federal and Oklahoma income tax.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.↩
- 2To learn more about the Oklahoma 529 College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Plan Description at ok4saving.org. Read it carefully. Oklahoma tax payers can reduce their state taxable income by up to $20,000 if married filing jointly ($10,000 filing single), with a five-year carry forward, from contributions made into an Oklahoma 529 College Savings Plan. 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. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. If the funds aren’t used for qualified higher education expenses, a 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 the Oklahoma 529 College Savings Plan.↩
- 3In an annual review (10/26/2021) of the largest 529 college savings plans (62 total), Morningstar identified 32 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2021. 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, an appropriate menu of options to meet investor needs, strong oversight from the state and investment manager, and minimal fees. The four key pillars used by Morningstar to evaluate college savings plans include – Process, People, Parent, and Price. For more information about Morningstar’s overview of the Oklahoma 529 College Savings Plan, go to Morningstar.com. 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.↩
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