About 529 plans
A 529 plan is a tax-advantaged savings plan designed to help families save for college and a range of other qualified education expenses. 529 refers to Section 529 of the Internal Revenue Code. Read more here: Benefits of a 529
Oklahoma 529 provides a unique set of benefits that can mean more flexibility and growth potential, including:
Oklahoma state tax deduction
Tax-free qualified withdrawals
Low fees and expenses
Easy to choose investment options
Favorable financial aid treatment
Use for a wide range of education expenses and programs – in Oklahoma and around the world
Get more details and compare savings options .
With your Oklahoma 529, you're never locked in. You'll always have access to several options for this money:
Your funds can be used to pay for a variety of eligible education expenses , including at any accredited college, university, CareerTech, community college or postgraduate program in the United States—and even some schools abroad. Your funds can also be used for curriculum, instructional materials, tutoring by approved professionals, standardized test and dual enrollment fees, and licensed educational therapies for students with disabilities as well as for qualified expenses when enrolled in a recognized postsecondary credentialing program. In addition, up to $20,000 annually can be used toward K-12 tuition (per student) from Oklahoma 529.
You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the "Additional Tax"). See the Plan Description for more information and exceptions.
If you just want the money back, you can withdraw the funds at any time. You'd just pay the applicable taxes and penalty on earnings.
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
Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So if your child changes their mind down the road, your savings will still be available.