Footnotes

1 Withdrawals for student loan repayment can be withdrawn free from federal and Oklahoma income tax. If you are not an Oklahoma taxpayer, these withdrawals may include recapture of tax deduction and state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances. ↩

A taxable withdrawal will be subject to applicable state and federal income tax on earnings, if any, but will not be subject to the 10% additional federal tax on earnings (the "Additional Tax").

Some examples of a taxable withdrawal include a beneficiary's death, permanent disability, receipt of a scholarship award or attendance at a military academy. For more information, review the Plan Description .

Taxable withdrawals that are not subject to the 10% federal penalty tax are withdrawals due to the beneficiary's death, the permanent disability of the beneficiary, the beneficiary's receipt of a scholarship award or certain other tax-free amounts, or the beneficiary's attendance at a military academy. A taxable withdrawal will be subject to applicable state and federal income tax on earnings, if any.

Effective January 1, 2024, Account owners may roll money from an Oklahoma 529 account to a Roth IRA for the benefit of the 529 plan account beneficiary without incurring federal income tax or penalties (state tax treatment varies). For the rollover to be treated as a non-taxable event, certain conditions apply as referenced in Am I eligible to rollover funds from my 529 plan account to a Roth IRA? 1