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Oklahoma Dream 529 Plan

Oklahoma Dream 529 Plan, an advisor-sold 529 savings plan, managed by TIAA-CREF Tuition Financing, Inc. and Allianz Global Investors Distributors LLC, features 18 mutual fund portfolios from 3 different money managers. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

3 of 5

Fee Scorex

2.5 of 5

Performancex

1.5 of 5

  • Program typeSavings
  • Inception2009
  • State agency
    Oklahoma College Savings Plan Board of Trustees
  • Tax deduction
    Tax deduction for single filers $10,000/yr
    Tax deduction for joint filers $20,000/yr
  • Program Manager
    TIAA-CREF Tuition Financing, Inc. and Allianz Global Investors Distributors LLC
  • Program distributor
    Allianz Global Investors Distributors LLC
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for OK residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

Our overall rating for non-residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.


1.88of 5

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens or resident aliens at least 18 years old, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Oklahoma 529 plans for the same beneficiary reach $300,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $1,000 (with at least $250 per investment option), and the minimum subsequent contribution is $50 per investment option. With the automatic investment plan, the minimum initial contribution is $250 and the minimum contribution level is $50 per investment option per month.

Investment Options

Age-based investment options:

The Age-Based option contains 6 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.View more age-based investment options

Static investment options:

Select among 2 multi-fund portfolios (Capital Appreciation and Capital Preservation) and 10 individual-fund portfolios.View more static investment options

Underlying investments:

Mutual funds manged by Allianz-affiliated companies, PIMCO and TIAA-CREF.View a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$5 quarterly for accounts with less than $20,000, waived with automatic contributions, or if total of all accounts with the same account owner equals or exceeds $50,000.

Program management fees:

Program manager fee: 0.50%
Servicing and administrative fee: 0.25% (0.10% for PIMCO Short Asset option)
Class A distribution fee: None
Class C distribution fee: 0.75% (none for PIMCO Short Asset option)

Expenses of the underlying investments:

Ranges from 0.38% to 0.61% (portfolio weighted average) in the age-based, 0.34% to 0.61% in the static multi-fund portfolios, and from 0.06% to 0.94% in the individual-fund portfolios.

Total asset-based expense ratio:

Class A: 0.81% - 1.69%
Class C: 0.89% - 2.44%

Broker loads and commissions:

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Breakpoint pricing:

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Does breakpoint pricing include non-529 assets under rights of accumulation policies

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Taxes and other Benefits

  • Tax deduction for single filers$10,000/yr
  • Tax deduction for joint filers$20,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to Oklahoma's 529 plans, including rollover contributions, of up to $10,000 per year for an individual taxpayer, and up to $20,000 per year for a married couple filing jointly, are deductible in computing Oklahoma taxable income, with a five-year carryforward of excess contributions. Contribution deadline is April 15 of the following year.

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan, and of rollovers to another 529 plan within one year of the date of contribution, are included in Oklahoma taxable income to the extent of prior Oklahoma tax deductions. A nonqualified withdrawal or rollover in the same year as the contribution will reduce the amount eligible for the Oklahoma deduction. A nonqualified withdrawal or rollover during the five-year carryover period will reduce the amount of any carryover deduction. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship.

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

State tax treatment of qualified distributions:

Qualified distributions from Oklahoma and non-Oklahoma 529 plans are exempt.

State tax treatment of rollovers:

Oklahoma follows federal tax-free treatment except that outbound rollovers made within 12 months of the date of contribution are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Effective November 1, 2008, money in an Oklahoma 529 plan account is no longer considered in calculating eligibility for TANF, Food Stamps or the Low Income Home Energy Assistance Program (LIHEAP).

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

http://www.okdream529.com

Telephone:

1-877-529-9299

Telephone for broker use:

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