The benefits of a 529 account can help make your child's future brighter
Opening a 529 college savings account can be a smart way to save for your child's higher education.
The tax advantages, low fees and flexibility of our 529 account allows you to support your child's dreams for their future. Plus, you can easily invite family and friends to join the savings journey with Ugift®.
Remember: Every dollar saved today may be one less dollar borrowed in the future.
Triple tax advantages can help both you and your child
You could save more with an Oklahoma 529 account. Get tax-deferred growth and 100% tax-free withdrawals on qualified expenses. Plus, you may qualify for a state tax deduction up to $20,000 per beneficiary per year for married/joint filers for contributions made into an Oklahoma 529 account.
Limitations apply.1
How to maintain more of your potential growth
This chart illustrates the hypothetical growth of an initial $2,000 investment and a monthly $200 contribution over 18 years in a taxable account vs. a tax-deferred account, assuming a 7.28% annual return. Based on past performance and does not predict or guarantee future results. Click here for chart assumptions.
Taxable account at 18 Years Total: $75,498.91
100% tax-deferred account at 18 Years Total: $93,431.79
- Amount of taxes that could be saved: $17,932.88
Read about material differences between taxable investments and tax-deferred investments.
You have options for how you save and use your savings
Low fees
Oklahoma 529 has some of the lowest fees of 529 plans in the nation. That could mean more money toward your savings.2
Flexibility
Use savings for qualified education costs at eligible institutions in the U.S. or abroad—including tuition, housing, books and more. Unused funds never expire and can be used at a later time, or they can be transferred to an eligible family member or a Roth IRA (subject to rollover rules and limits).3
Investment options
Our experienced investment team provides access to diverse investment options to align with your investment strategy and preferred level of involvement all while keeping costs low.
Read more about investment options.
Strategic savings
Saving for education can feel overwhelming, but we're here to help. See how your contributions can add up with our tools designed to track your progress and highlight the impact of compound growth.
Learn how our 529 works.
Keep track of your education savings on the go
Open and manage your 529 account with the ReadySave™ 529 app.
- Monitor your savings progress and track your goals
- Check your account balance or investment allocations
- Easily make one-time or recurring contributions
- Invite family and friends to contribute with Ugift®
Have more questions about Oklahoma 529 College Savings Plan benefits?
With your Oklahoma 529, you're never locked in. You'll always have access to several options for this money:
- Your funds can be used to pay for a variety of eligible education expenses, including at any accredited college, university, CareerTech, community college or postgraduate program in the United States—and even some schools abroad. In addition, up to $10,000 annually can be used toward K-12 tuition (per student) from Oklahoma 529.
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
- If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the "Additional Tax"). See the Plan Description for more information and exceptions.
- If you just want the money back, you can withdraw the funds at any time. You’d just pay the applicable taxes and penalty on earnings.
- Account owners may roll money from an Oklahoma 529 account to a Roth IRA for the benefit of the 529 plan account beneficiary without incurring federal income tax or penalties (state tax treatment varies). For the rollover to be treated as a non-taxable event, certain conditions apply as referenced in Am I eligible to rollover funds from my 529 plan account to a Roth IRA?1
Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So if your child changes their mind down the road, your savings will still be available.
Footnotes
- 1The TIAA group of companies and Oklahoma 529 do not provide legal or tax advice. Please consult your tax or legal advisor to address your specific circumstances.↩
Your contributions will always be yours, and you do not need to be a resident of Oklahoma to open, contribute to or use an Oklahoma 529. Your Oklahoma 529 can also be used for a range of qualified expenses in state, out of state and abroad. If you move to another state, you can keep your money invested and continue making contributions to your Oklahoma 529 account—no problem!
Assets in a parent-owned 529 account have less of an impact on financial aid than some other savings methods. The Student Aid Index (SAI) calculations for financial aid generally factor parent assets outside of retirement savings at approximately 5%, whereas student assets are generally factored in at 20% or more. Therefore, a parent-owned 529 account may have less of an impact on financial aid eligibility than assets owned by the student.1
Footnotes
- 1The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder's and not the student's. (Student assets are generally assessed at 20%, whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student's eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue.↩
An Oklahoma state plan has been the preferred choice for thousands of families for 25 years. With an established history, Oklahoma 529 has served more than 100,000 students1 and was assigned the highest "Best" rating by Morningstar2. The Oklahoma Board of Trustees selected TIAA-CREF Tuition Financing, Inc. (TFI) as the Direct Plan Manager.
Footnotes
- 1Based on statistics provided as of 12/31/2024.↩
- 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 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.↩
- Morningstar Analyst Rating of Bronze 2023, 2022, 2021 and 2020.
