Oklahomans have until the tax deadline to take advantage of triple tax benefits
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Oklahoma 529
State Treasurer Todd Russ wants to remind Oklahomans that it’s not too late to open or contribute to an Oklahoma 529 account to enjoy 2023 tax benefits. Oklahoma taxpayers have until April 15, 2024, to qualify for a state tax deduction on their 2023 Oklahoma state tax return.
As the state’s education savings plan, families who invest in an Oklahoma 529 account, can receive a triple tax benefit to potentially help save thousands of dollars each year in taxes. There are three ways to save once you open and contribute to an Oklahoma 529 account:
- Account owners may qualify for a state tax deduction for Oklahoma residents up to $20,000 if married filing jointly;
- Tax-deferred growth on any earnings;
- Tax-free withdrawals for qualified higher education expenses such as tuition, fees, housing and food, books and more.
“With inflation top of consumers’ minds and the cost of education continuing to rise, Oklahoma 529 is a flexible way for education savings, from kindergarten all the way through a student’s higher education journey,” Russ said.
Saving for college has never been more important as tuition costs continue to rise. For public 4-year college and universities, the 5-year average tuition inflation rate is 17 percent, while for non-profit private institutions average tuition increased by 13 percent.1 For the academic year 2024, the average cost of attendance at Oklahoma four-year colleges is $23,007 for residents, according to collegetuitioncompare.com.
Earlier this year, Russ announced a 50-percent reduction in management fee for Oklahoma 529. This reduction, the largest in the state tax-advantaged education savings plan’s nearly 24-year history, is expected to save Oklahoma families participating in OK529 accounts over $1,000,000 annually. The plan has no sales charges, enrollment fees or annual account maintenance fees.
Russ also noted Oklahoma 529 maintained its medalist rating with Morningstar™ Analyst Rankings for the fourth year in a row.
Visit Oklahoma529.com to learn more about Oklahoma 529 and ways to open an account.