Most families hope to see their child or loved ones graduate from college someday. Saving for college these days takes much more than just hopes. The 529 college savings plan of Oklahoma helps families save the money that they need to pay for their children’s college tuition. The Oklahoma 529 college savings plan offers outstanding flexible options for all account holders. There are many different tax advantages that can help parents save money faster. Here are some of the many outstanding advantages with the Oklahoma 529 college savings program.
Oklahoma 529 College Savings Plan Tax Benefits
There are some outstanding tax benefits with the 529 college savings plan. All earnings or distributions used to pay for college education expenses will be tax-free from federal and Oklahoma income tax. Contributions that are made can be deducted from your Oklahoma taxable income. The maximum amount an Oklahoma taxpayer can deduct per year is $10,000. Couples that file jointly can deduct up to $20,000 per year. Contributions that are made into the account for more than the amounts that we had discussed can be moved forward into the following year.
This means you can take the tax break if you may contributions larger than $10,000. Federal estate and gift tax benefits are also great advantages with 529 college savings plans. Annual federal gift tax exclusions of $13,000 per donor are allowed per beneficiary. These tax savings make the Oklahoma 529 college savings plan one of the best in the country. These tax advantages help parents save money faster and the amount of contributions that they make.
Flexible features with Oklahoma 529 College Savings Plans
Account flexibility can be a key factor for many parents who want to open up a college savings account. The Oklahoma 529 plan lets you take full control of your portfolio and the amount of contributions that you make in a given year. The funds that are accumulated can be used at eligible schools nationwide. Beneficiaries can be changed once a year to the account owner’s preference. Funds that are accumulated over the life of the account can be used for mandatory college fees, books, tuition costs, supplies, and equipment that may be required for enrollment into a state University. Certain room and board costs are also eligible for distributions.
Investment Options with the Oklahoma 529 College Savings Plan
The Oklahoma 529 plan offers a choice of nine different investment options that you can choose from. These options offer various types of portfolios based on the amount of risk they you are willing to take. Minimal initial contributions of her hundred dollars per investment option are required. Minimum subsequent contributions to the account can be made with as little as $25 per investment options. This gives parents full control of how their money is invested and at what risk. Age-based portfolios are also popular investment options with 529 plan accounts.
Saving for college has never been as important as it is today. Competition in America makes it essential for children to get a higher education to be able to compete. As costs of tuition rise, the Oklahoma 529 college savings plan can be a great way for parents to start saving money now. Take advantage of the many benefits that exist with this outstanding savings account.