Oklahoma families continued their strong commitment to saving for college through the Oklahoma College Savings Plan (OCSP) in 2024, when total assets in the OCSP reached nearly $1.7 billion. The number of unduplicated accounts grew to almost 86,000, an increase of over 4,000 or 4.7% compared to 2023.
The OCSP is Oklahoma’s 529 college savings plan. The “529” is a designation based on the IRS code section, which authorizes state “qualified tuition programs.” As a 529 plan, earnings on investments in the program are exempt from both federal and state income taxes if used for qualified education expenses.
In addition to paying expenses at colleges and universities across Oklahoma – including for concurrent enrollment – and throughout the nation, funds can be used to pay tuition and fees at Oklahoma CareerTech centers, for eligible K-12 tuition expenses, for apprenticeship expenses, and for student loan repayment, subject to limitations.
“College graduates have higher income, more career advancement opportunities, higher retirement savings, and higher net worth,” said Chancellor Sean Burrage. “The Oklahoma College Savings Plan offers flexibility for families paying education expenses and helps minimize education loan debt while providing tax advantages for savers. Since the program’s inception in 2000, OCSP has distributed more than $1.14 billion to pay college expenses for nearly 46,000 beneficiaries.”
Oklahoma provides an annual state income deduction on OCSP contributions of up to $10,000 per taxpayer or $20,000 for joint-filers. An OCSP account can be opened with as little as $25, with subsequent contributions as small as $25 or $15 per pay period.
“No matter a student’s path, investing in education is one of the best financial decisions a family can make,” said Treasurer Todd Russ. “Workers with a college degree or specialized training earn significantly more over their lifetime, benefiting not just themselves but also our state’s economy. The Oklahoma College Savings Plan makes saving easier, reduces the need for student loans, and helps families turn today’s investments into tomorrow’s success.”
In 2024, the OCSP board authorized 529 account holders to roll over unused funds into Roth IRAs, giving families more flexibility in utilizing unused 529 assets, and expanded eligibility for the Oklahoma Dream 529 at Work program, a workplace savings plan that enables employees to contribute to their Oklahoma Dream 529 accounts via payroll deductions.
Oklahoma families have until April 15, 2025, to open and contribute to an Oklahoma 529 account and qualify for a state tax deduction on their 2024 taxes. For full information about the Oklahoma 529 college savings plan, visit www.oklahoma529.com.