There is no better investment than in higher education for our state’s children. On an individual basis, people with a college education earn 45 percent more than those with no college degree. On a broad scale, the economy of Oklahoma will be stronger if we have more college graduates.
The Oklahoma College Savings Plan began accepting contributions in April 2000 and participation has grown exponentially.
Oklahoma allows a deduction from annual state taxable income of up to $10,000 per contributor in the Oklahoma College Savings Plan. Couples filing jointly can deduct up to $20,000 per year. The new law means you can get a tax deduction in the same year you make your contribution, in addition to the existing tax benefits described above.
The deduction applies to anyone who contributes money to an account in the Oklahoma College Savings Plan, whether they’re related to the beneficiary or not. With this new tax break, parents and grandparents can get the deduction for making contributions and so can family friends who wish to make a gift in the form of a contribution to a college savings account.
Also, a new federal tax break means interest earnings will be free from federal taxes, even when the money is used to pay for college. Until 2002, the earnings were taxed when used.
If you have children or grandchildren, it is never too early or too late to open up a college savings account. In fact, the earlier you start saving for a child’s college education, the more that money will grow over time. I would urge all Oklahoma families to open up these accounts for their children and grandchildren.
The Oklahoma College Savings Plan is the most flexible and beneficial way to save for those expenses. Contributions can be made through payroll deduction. An account can be opened with as little as $100 and deposits as low as $25 can be made. In addition, the program is completely flexible as to choice of college. The money can be used for higher education whether the child attends college in state, out of state, or goes to public or private institutions.
Click here to go to the official website for the Oklahoma College Savings Plan