Page 127 - Sample Financial Plan 4-1-2019 v2

Discipline leads to
achieving goals

Piano lessons are always the highlight of
Kate’s week. She doesn’t mind the discipline
required to achieve her goals. At home,
Kate’s parents also teach discipline about
savings, matching a portion of her
contributions to her home-made “bank” and
encouraging her to put a percentage of
birthday and other gift money toward her
college savings account.

Children can participate in saving for their
own future. Starting the savings habit today
can mature into your child’s financial
security in the future.

What is a 529 College Savings Plan?

In the same way a 401(k) offers tax advantages to help you save for retirement, a 529 plan

helps you save for college expenses. Section 529 refers to the federal tax code allowing states
to sponsor tax-favored higher education savings programs to help families save for college
more easily and achieve their college savings goals.

What makes the Oklahoma 529 College

Savings Plan (OCSP) Unique?

Individual taxpayers may deduct up to $10,000 in OCSP contributions each year from their

Oklahoma adjusted gross income, and taxpayers filing jointly may deduct up to $20,000.
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Plus, you can carry forward larger gifts into the following year. Limitations apply.
Additionally, plan earnings are 100% free from federal and state taxes when used for
qualified education expenses.

What’s more, contributions to OCSP may reduce the taxable value of your estate because of
federal estate and gift tax benefits. Please consult your tax advisor about your own situation.