OKLAHOMA CITY – As holiday shopping gets underway, State Treasurer Ken Miller is encouraging Oklahoma parents and grandparents to consider a gift that kids won’t outgrow—contributions to an Oklahoma 529 College Savings Plan account.
To make that gift even more attractive, the Oklahoma College Savings Plan (OCSP) is offering a special bonus promotion from Black Friday through Cyber Monday. New accounts opened Nov. 23-26 and set up for automatic contributions will receive a bonus $50 from OCSP. For details, visitwww.ok4saving.org/offer.
Miller, board chair for OCSP, said the benefits of college savings last for years to come.
“Kids will outgrow clothes and lose interest in even the trendiest toy, but the benefits of higher education will last for the rest of their lives,” Miller said. “Setting aside even small amounts regularly over time can make a big difference when it’s time to attend college.”
Miller said OCSP contributions are a gift that children will appreciate more as they get older.
“Taking even a portion of what you’re going to spend on gifts this year and putting it in an OCSP account is a worthwhile investment,” Miller said. “College graduates have more job opportunities and make more over their lifetimes, so OCSP contributions, and the educations they help pay for, really are the gifts that keep on giving.”
Parents, grandparents, relatives or friends who are U.S. citizens or permanent residents and at least 18 years old may open an OCSP account on behalf of a beneficiary, and the minimum initial contribution is only $100. Once an account is open, anyone can contribute, making an OCSP account a great gift idea for all family and friends.
The $50 bonus contribution for new accounts will be deposited after six months of automatic contributions.
The OCSP website, ok4saving.org, provides gift-givers with an eGifting option where contributions can be made to an OCSP account online, and “Gift of Education” certificates can be created to show the contribution to a loved one’s account.
For those hoping family and friends will contribute to an existing plan, OCSP has created an option to allow account owners to send a tactful, prewritten email inviting others to contribute to their existing OCSP account.
Through September 2018, more than $961,000 has been contributed through the OCSP eGifting program, representing more than 1,000 gifts. Last year, 39 percent of all eGifted dollars were received in November and December.
“The eGifting program gives an extended family the opportunity to contribute to college savings,” Miller said. “Grandparents, aunts, uncles and anyone else can help their loved ones reach their college savings goals.”
More information about opening an OCSP account can be found at www.ok4saving.org.
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 direct their own 529 college savings accounts. The plan is managed by TIAA-CREF Tuition Financing, Inc. Introduced in March 2009, OklahomaDream 529 Plan is offered through financial advisors and is managed by Allianz Global Investors. As of September 30, 2018, combined assets in both plans exceeded $1 billion.
Oklahoma taxpayers may deduct, from their Oklahoma adjusted gross income, up to $10,000 in contributions to the Oklahoma 529 College Savings Plan for individual taxpayers and up to $20,000 for taxpayers filing a joint return with a five-year carryforward. Read the Disclosure Booklet carefully.
Consider the investment objectives, risks, charges, and expenses before investing in the Oklahoma College Savings Plan. Please visit www.ok4saving.org or call toll-free 1-877-654-7284 for a Plan Disclosure Booklet containing this and more information. Read it carefully.
Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarships and 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.
Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. 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.
Funding for OCSP prizes comes from the marketing budget of the Oklahoma 529 College Savings Plan; no state funds are used.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor, and underwriter for the Oklahoma College Savings Plan.
