Start Saving for College Now with a 529 Plan
The earlier parents save for college, the easier it will be to fund their child’s college expenses. The Oklahoma 529 College Savings Plan is an easy and safe way for parents or grandparents to start an account. A 529 plan can offer big advantages for families who are saving for college.
What are the advantages of a 529 Plan?
Consider that all contributions are made with after-tax dollars, but the money grows tax-free. Yes, all gains are tax-free at withdrawal as long as they are used for qualifying educational expenses. Other tax advantages are outlined on the website. And the money can be used for any college or university in the country, not just in Oklahoma, as well as technical/vocational and accredited business schools.
Best of all, the savings can be relatively painless and lucrative if started when kids are young because the money will have a lot of time to take advantage of the tax-free accumulation.
At www.ok4saving.org, you can sign up for the plan to automatically withdraw as little as $25 per month from a checking account or $15 per pay period with a payroll deduction, or contribute as much as $13,000 for a single parent or $26,000 per year for a couple.
So what are qualified education expenses?
- Tuition
- Books
- Supplies
- Required fees
- Certain room and board costs if the student is enrolled at least half-time
- Up to $10,000 annually can be used for K-12 tuition per student
For information or to open an Oklahoma 529 College Savings Plan, go to www.ok4saving.org.
