Oklahoma 529 contributions offer 2023 tax benefits through April 15

published March 22, 2024

Oklahoma City (March 22, 2024) — State Treasurer Todd Russ wants to remind Oklahomans that it’s not too late to open or contribute to an Oklahoma 529 account to enjoy 2023 tax benefits. Oklahoma taxpayers have until April 15, 2024, to qualify for a state tax deduction on their 2023 Oklahoma state tax return.

As the state’s education savings plan, families who invest in an Oklahoma 529 account, can receive a triple tax benefit to potentially help save thousands of dollars each year in taxes. There are three ways to save once you open and contribute to an Oklahoma 529 account:

1. Account owners may qualify for a state tax deduction for Oklahoma residents up to $20,000 if married filing jointly;
2. Tax-deferred growth on any earnings;
3. Tax-free withdrawals for qualified higher education expenses such as tuition, fees, housing and food, books and more.

"With inflation top of consumers' minds and the cost of education continuing to rise, Oklahoma 529 is a flexible way for education savings, from kindergarten all the way through a student’s higher education journey," Russ said.

Saving for college has never been more important as tuition costs continue to rise. For public 4-year college and universities, the 5-year average tuition inflation rate is 17 percent, while for non-profit private institutions average tuition increased by 13 percent.¹ For the academic year 2024, the average cost of attendance at Oklahoma four-year colleges is $23,007 for residents, according to collegetuitioncompare.com.

Earlier this year, 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. The plan has no sales charges, enrollment fees or annual account maintenance fees.

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

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

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Footnotes

1. ¹Education Data Initiative, August 13, 2023, "College Tuition Inflation Rate". ↩
2. 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.
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. 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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