The office of the Oklahoma State Treasurer offers two state savings plan programs. The Oklahoma 529 for education savings and the Oklahoma Able savings plan for people who are differently abled, both managed by the Treasurer’s office.
The Oklahoma529 education savings plan offers a way to help families save for education expenses, allowing money to be set aside in a tax advantaged account that can be used to pay for qualified education expenses like tuition, books and housing.
- Tax Deduction
- Deduct up to $20,000 or $10,000 (if filing individually) in Oklahoma 529 contributions each year. Carry forward larger gifts up to five years.
- Tax Free
- Contributions grow tax-deferred, which may result in larger gains over time. Withdrawals are tax-free when the money is used for qualified higher education expenses.
- Gifting
- Saving for a large goal can feel overwhelming. The good news is you don’t have to do it alone. Family and friends can help by gifting to a child’s Oklahoma 529 account at birthdays, graduations, holidays, or just because. Oklahoma taxpayers may be eligible for the state income tax deduction.
- Flexible
- Funds can be used at eligible schools throughout Oklahoma and nationwide. So whether the beneficiary wants to study rocket science in Oklahoma, welding in Texas or cooking in California, he or she is covered.
- Low fees and expenses
- Less than half the average expenses of other 529 plans, means more money for college.
Every parent knows they need to start saving for their child’s future. Setting aside money now can go a long way. However, with the rising costs for college, where you save and invest matters more than ever. Oklahoma 529 offers peace of mind and can make saving for higher education easy.
Worry-free if all funds aren’t used for education. Roll over remaining funds to a Roth IRA without incurring federal income tax or penalties.
The Oklahoma Able plan offers Stable Accounts for people who are differently abled with an ability to save for the future without the fear of losing needed government benefits. A STABLE account through Oklahoma Able is a way for Oklahomans to save for qualified expenses, invest for future needs, and keep the benefits you rely on every day.
- Any resident of Oklahoma who developed a qualifying disability before the age of 26 is eligible.
- Accountholders can save and invest up to $18,000 a year (and, if employed, up to $14,580 more) for a wide range of qualified expenses.
- The account’s growth is tax-free and your contributions may qualify for a state income tax deduction.
- Supplemental Security Income (SSI) will not be affected as long as the account balance stays below $100,000.
Contributions to Stable accounts are state income tax deductible, up to $20,000 per year for joint tax filers and up to $10,000 per year for those filing as single.
