Oklahoma 529 accounts are a meaningful gift idea for families this holiday season
Contributions are eligible for 2022 tax benefits and provide education opportunities
published November 28, 2022
Oklahoma City (Nov. 2022) — The hustle and bustle of the holiday season is here for millions of Oklahomans. There’s a way to leave yourself more time to enjoy holiday cheer and skip the long lines at the mall. Oklahoma 529 offers an alternative gift that helps families reduce the stress of shopping chaos and enjoy the season.
“The holidays are a time of giving and thinking of others,” State Treasurer Randy McDaniel said. “I encourage Oklahomans to open an Oklahoma 529 account and give the gift of an education savings account. An OK529 account can be used for many education paths, making a real difference in a child’s life.”
Parents, grandparents and friends may open an Oklahoma 529 account for any child or grandchild. An account can be opened with an initial contribution as little as $25, and anyone can gift contributions to an existing Oklahoma 529 account through the Plan’s Ugift® platform.
An Oklahoma 529 account can pay for tuition and expenses related to college and universities, K-12 private tuition, apprenticeships, Oklahoma CareerTech, concurrent enrollment and student loan repayment.1 By opening an account and starting early, parents and grandparents can help their children realize the advantages of higher education and experience less debt in the future.
In addition, contributions to an Oklahoma 529 account may qualify for a state tax deduction up to $20,000 for joint filers and up to $10,000 for single filers. Any earnings grow tax-deferred and qualified withdrawals are tax-free. Limitations apply.2
“The benefits of an Oklahoma 529 account are many,” McDaniel said. “In addition to saving for future educational expenses, contributions receive tax benefits that are valuable for Oklahoma families.”
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 for higher education.
- 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private or religious elementary, middle, or high school, registered apprenticeship programs, and student loans can be withdrawn free from federal and Oklahoma income tax.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. K-12 withdrawals are limited to $10,000 per year for K-12 tuition. Student loan repayment subject to a lifetime limit of $10,000 per individual when using a 529 plan. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.↩
- 2To learn more about Oklahoma 529, its investment objectives, tax benefits, risks and costs, please see the Plan Description at oklahoma529.com. Read it carefully. Oklahoma taxpayers 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 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 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 the Oklahoma 529.↩