Transcript Document

Oklahoma’s 529 College Savings Plan
(OCSP)
The Cost of College
$400,000
$340,800
$300,000
$200,000
$119,400
$100,000
$95,000
$0
$33,300
2010
2028
4-Year Public College
2010
2028
4-Year Private College
Based on four years of average tuition and fees for 2010-2011 and assumed to increase 6%
annually.
Source: SavingforCollege.com, “The real cost of higher education” and The College Board®.
(This is a hypothetical example for illustrative purposes only).
Use our College
Planner Mobile App to
learn more.
TFI, launched in 1999, serves 11 states
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How does a 529 Plan work?
Beneficiary = Future Student
Account Owner
• No age restrictions
• No income limitations
• No time restrictions
• No residency required
• No residence requirement
• Full control
• Beneficiary can be changed to another
eligible family member
A College Education
Tax Advantages
Account contributions are made after-tax.
Contributions can reduce your Oklahoma taxable income
each year up to $10,000 per individual or $20,000 per
married couple. (See the Disclosure Booklet for details.)
Any earnings have the opportunity to grow:
• Tax-deferred
• Any account earnings grow tax-deferred
• Tax-free
• Withdrawals of any earnings for qualified higher
education expenses are free of federal and Oklahoma
state income tax
Did you know?
Oklahoma provides a
five-year carryforward for excess
contributions.
Low Fees
Total annual plan fees are under 100 basis points for every
investment option. The Guaranteed Option is offered
without a fee.
•No application fee
•No transfer fee
•No commissions paid on accounts
•No sales fees
•No annual account maintenance fee
Review the Plan Disclosure Booklet or visit
OK4saving.org for a list of fees and descriptions.
Did you know?
OCSP is among the lower
cost 529 plans in the
country.
Who can I contribute for?
Beneficiaries may include:
• Your child
• Your grandchild or great-grand child
• Your niece or nephew
• Your friend or other relative
• Yourself
Flexible Choices
Can be used at eligible higher education institutions
nationwide (and many abroad), including;
• College
• University
• Technical Colleges
• Any type of degree or certificate program
• Graduate degrees included
For a list of applicable international schools, visit
OK4saving.org.
Ease in using the account
The account can be used for a variety of qualified
expenses, including:
• Tuition
• Mandatory Fees
• Certain Room and Board Costs*
• Books
• Mandatory Equipment and Supplies
* Student must be enrolled half the time of a full time course of
study. See the Disclosure Booklet for more information.
Did you know?
Computers are
considered a qualified
expense if required
for a course.
Non-Qualified Withdrawals
• The earnings portion, if any, of non-qualified
Withdrawal due to death, disability, or receipt of
scholarship or attendance at a Military Academy by the
designated beneficiary is subject to applicable federal and
state income tax, if any.
• The earnings portion, if any, of a non-Qualified
Withdrawal not due to death, disability or receipt of
scholarship or attendance at a Military Academy is
subject to applicable federal and state income tax, plus a
10% additional federal tax.
Easily access your account
• Only the account owner can take a withdrawal.
• Withdrawals can be requested
- By Form
- Online
- Smartphone
• A withdrawal can be sent directly to:
- Account Owner
- Institution
- Beneficiary/Institution
• Receipts are not required to withdraw funds.
• Account owners should maintain records of their
withdrawals and keep their receipts.
Wide range of investment options
Nine different investment options to choose from. You can select one
or any combination that best meets your investment objectives.
Age-Based
- Moderate Managed Allocation
- Conservative Managed Allocation
- Aggressive Managed Allocation
Multi-Fund
- Diversified Equity Option
- Global Equity Index Option
- Balanced Option
- Fixed Income Option
Single-Fund
- U.S. Equity Index Option
Capital Preservation
- Guaranteed Option
Choosing your Investment Option
• Choose an investment option based on your time frame
and risk tolerance
• Risk tolerance questionnaire available at ok4saving.org
• You may choose more than one investment option or a
different investment option at anytime
• You may transfer funds from one investment option to
another one time per calendar year
Easy to get started
• Go to OK4saving.org for easy, online opening.
• Open for as little as $100, with:
- Checks
- Electronic Bank Transfer
- Automatic Contribution Plan
- Payroll Deduction/Direct Deposit, if employer allows
- Gifts from family members and friends
- Account owners need beneficiary name and date of
birth, Social Security Number or federal Taxpayer
Identification Number
Call us toll-free to speak with a college savings plan
specialist at (877) 654-7284.
Educational video
available at
OK4saving.org.
Important Disclosures
Consider the investment objectives, risks, charges and expenses before
investing in the Oklahoma College Savings Plan. Visit OK4saving.org, or call
the Plan, for a Disclosure Booklet containing this and other information. Read
it carefully.
Before investing in a 529 plan, consider whether the state where you or your
Beneficiary resides has a 529 plan that offers favorable state tax benefits that
are available if you invest in that state’s 529 plan.
The tax information contained herein is not intended to be used, and cannot be
used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers
should seek advice, based on their own particular circumstances, from an
independent tax advisor.
*Investments in the Plan are neither insured nor guaranteed except for TIAA-CREF Life
Insurance Company’s guarantee to the Oklahoma College Savings Plan under the Funding
Agreement for the Guaranteed Option, and there is a risk of investment loss. Account
values will fluctuate based on a number of factors including general market
conditions.
Withdrawals that are not used for qualified higher education expenses may be subject to
federal income tax and any applicable state income tax, as well as an additional 10% federal
tax.
TIAA-CREF Tuition Financing, Inc., Plan Manager.
C13408