529 Plans: Oklahoma

Slowly but surely we are making our way across this nation and taking in the sights. Well, not really. What we are taking in, however, is what each state in our country offers up in terms of plans for saving for college – their 529 plans. This time out, we look to Oklahoma (where the wind comes sweeping down the plain).

The Plans and Their Similarities

Oklahoma is not only a well known musical and movie with catchy songs that roll around in your head once you start thinking of them, it is also a state home to two 529 college savings plans: the aptly named Oklahoma College Savings Plan and the Oklahoma Dream 529 Plan.

Both plans offer up some similarities. First, both have a maximum contribution level of $300,000 per beneficiary. And while neither have any little extras, like a matching program, both do offer up some tax benefits (up to $10K for singles and $20K for marrieds can be deducted; any excess contributions can be carried forward for five years).

The Oklahoma College Savings Plan

Individually, the Oklahoma College Savings Plan is a direct sold plan with no associated maintenance or enrollment fees. Managed by TIAA-CREF Tuition Financing, this plan offers up both age-based and static options including fixed income, guaranteed and balanced. As for minimum contributions, there is a $100 initial minimum contribution per investment option with $25 per investment option thereafter for bank transfers and $15 for payroll deduction contributions.

The Oklahoma Dream 529 Plan

Oklahoma's other 529 choice, the Oklahoma Dream 529 Plan, is also managed by TIAA-CREF in conjunction with Allianz Global Investors Distributors and is an adivsor-sold plan. This plan also has more static and age-based options for investment than its counterpart. Contribution minimums are also higher, with the minimum level for lump sump contributions being $1000 and $250 after that; automatic investment plans are a bit lower at $250 initially and $50 per option per month thereafter. There are no enrollment fees associated with this plan, but for plans with less than $20,000, there is a $5 quarterly maintenance fee.

There you have it: the details on Oklahoma's options for college savings plans. Next stop: Kansas. Now who's still humming the theme song to Oklahoma?

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Anonymous's picture

femmefrugalitly wrote:

Tue, 03/20/2012 - 20:29 Comment #: 1

Love this series! See, I would have automatically thought the dream plan was better, and then I would have gone in without $1,000. Go figure.

Anonymous's picture

Bryan wrote:

Tue, 03/20/2012 - 21:01 Comment #: 2

I'm humming it, but, in my defense, I'm currently working on a production of the musical Oklahoma! :) I'm playing Jud.

Anonymous's picture

Marcos wrote:

Mon, 03/26/2012 - 16:54 Comment #: 3

Melinda,

This is a great post. Parents reviewing 529s should also ask about hidden % based maintenance fees (sometimes called Program Management Fees) on the broker sold plans which can be a lot more expensive than direct sold ones. For all plans, parents can encourage their friends and family to contribute directly to their plan at www.gradsave.com

Marcos

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