- What is a 529 college savings plan?
- What is the OklahomaDream 529 Plan?
- Who serves as the Program Administrator and Distributor?
- Who is Allianz Global Investors?
- What Share Classes are available?
- How often can I change how my account is invested?
- Do I need to do anything as the beneficiary grows older if I am invested in an Age-Based option?
- Will the percentages of the underlying Funds ever change?
- Where do I find information on investment performance?
- Will there ever be additional Investment Portfolios offered?
- Does the Program make any guarantees on returns?
- Where can I find a list and description of the portfolios' underlying mutual funds?
- What are the income tax benefits associated with the OklahomaDream 529 Plan?
- Are contributions tax-deductible on a federal level?
- Are there any disadvantages of the program regarding federal income tax?
- What are the gift tax advantages of a 529 account?
- Who can open an account in the plan?
- Who can be a beneficiary?
- Can others open an account for the same beneficiary I have designated?
- Can I open an account for an unborn child?
- Can I change the beneficiary on my account?
- What if my child (the Designated Beneficiary) does not go to college, or if the account assets exceed the Beneficiary's college costs?
- What is the minimum amount with which I can establish an Account?
- How much can I invest in an account?
- What are the fees and expenses?
- How do I open an Account?
- Can I open an Account Online?
- Can the account owner be changed?
- What is the minimum additional contribution amount?
- How do I make additional investments?
- Where do I send contributions?
- Can anyone contribute to my account?
- Can I contribute to more than one 529 plan?
- Can I view my account balance online?
Rollovers and Transfers
- Can I move money from another 529 plan to this 529 plan?
- Can I move money from an UGMA/UTMA account to this 529 plan?
- Can I move money from a Coverdell Education Savings Account or a qualified U.S. savings bond?
- Are there restrictions as to what schools I have to use my savings at?
- How can I use the money in my account?
- Can I use my account to pay for any college?
- What are qualified expenses?
- What if I need the money for something else?
- What if I move to another state?
What is a 529 college savings plan?
529 College Savings Plans are designed to help individuals and families save for college in a tax-advantaged way. The plans are named for Section 529 of the Internal Revenue Code.
What is the OklahomaDream 529 Plan?
The OklahomaDream 529 Plan (the "Program") is a college savings and investment program designed to enable individuals to save and invest for qualified educational expenses of a child or other beneficiary on a tax-favored basis.
Who serves as the Program Administrator and Distributor?
Allianz Global Investors Distributors LLC
Who is Allianz Global Investors?
Allianz Global Investors Distributors LLC is the administrator and distributor of the OklahomaDream 529 Plan.
What Share Classes are available?
Account Owners may allocate each contribution to one of several different classes of units in the selected Investment Portfolio, each of which has a different fee structure. The following Classes are available.
For Residents Outside Oklahoma:
- Class A Units (w/initial sales charge)
- Class A Units (load waived for fee-based advisors or Company-sponsored Plans)
Note: Trail paid to broker, but no commission or "finder's fee" applies.
- Class C Units (asset-based sales charge)
Alternatively, you may reallocate your investment options whenever you change the Account's Designated Beneficiary
Do I need to do anything as the beneficiary grows older if I am invested in an Age-Based option?
The Age-Based Investment Portfolios offer a diversified group of sixInvestment Portfolios designed to emphasize total return (and particularly capital appreciation) when the Designated Beneficiary of an Account is younger and increasingly emphasizes preservation of capital and income as the Designated Beneficiary approaches and reaches college age (presumed to be at age 18). The Age-Based options automatically adjust over time as your beneficiary ages, shifting from a larger weighting in return generating investments towards a more significant weighting in defensive investments.
If you are invested in an Age-Based option, you do not have to do anything as your portfolio will automatically be shifted to the next portfolio.
Will the percentages of the underlying Funds ever change?
The percentage allocations and mutual funds in which the Investment Portfolios are invested (the "Underlying Funds") are subject to change from time to time in accordance with the Investment Policy.
Where do I find information on investment performance?
To obtain detailed information surrounding the performance of the portfolios offered in the OklahomaDream 529 Plan, click on the performance tab located at the top of this page.
Will there ever be additional Investment Portfolios offered?
Additional Investment Portfolios may be established in the future. At the time you establish an Account, and at any time a subsequent contribution is made to the Account, you may select one or more of the Investment Portfolios and designate what portion of the contribution should be invested in each selected Investment Portfolio.
Does the Program make any guarantees on returns?
The Program does not guarantee that your Account will increase in value or achieve any rate of return, or that your Account will not decrease in value, or that the assets in your Account will be sufficient to pay the qualified education expenses of your Designated Beneficiary.
Where can I find a list and description of the portfolios' underlying mutual funds?
Please refer to the appropriate Plan Disclosure Statement for additional information surrounding each underlying mutual fund.
What are the income tax benefits associated with the OklahomaDream 529 Plan?
Federal income tax-free. Any earnings on the money you invest in your Account will not be subject to federal income taxes before they are distributed. Any amounts in the Account that are withdrawn to pay for the Designated Beneficiary's qualified education expenses will not be subject to federal income tax. Qualified education expenses include tuition, fees, room, board, books, equipment and other supplies.
In addition, starting January 1, 2018, 529 Plan account owners can withdrawal assets to pay for K-12 tuition (public, private or religious) up to $10,000 per year per beneficiary.
Oklahoma residents are also eligible for a state income tax deduction. The Plan allows up to $20,000 of contributions to be deducted from your Oklahoma taxable income annually ($10,000 for single filers). The contributor need not be the account owner to qualify for the deduction. Contributions may be made up to April 15th to earn a deduction from Oklahoma income tax for the prior calendar year. Rollover contributions are also eligible for this deduction and amounts contributed and not deducted may be deducted in the succeeding five years. For example, a $120,000 contribution at twice entitles the contributor to an annual $20,000 deduction for six years for joint filers.
Are there any disadvantages of the program regarding federal income tax?
There is one potential federal income tax disadvantage to the Program. Any earnings on your Account that are subject to federal income tax upon withdrawal (e.g., earnings withdrawn but not used to pay qualified education expenses) will be taxed to the Account Owner or Designated Beneficiary as ordinary income, rather than as capital gains, and may be subject to a federal 10% additional tax, if not used to pay for the Designated Beneficiary's qualified education expenses or otherwise exempted from such additional tax.
Earnings withdrawn for payment of one Designated Beneficiary's qualified education expenses generally are not excludable from gross income to the extent other federal tax credits and incentives are used for the same expenses. You are encouraged to consult your accountant, financial or tax advisor for a better understanding as to how the specific application of these tax rules apply to your particular circumstances.
What are the gift tax advantages of a 529 account?
Normally, a gift of more than $15,000 to a single person in one year is subject to federal gift tax. With the Program, an individual can potentially contribute up to $75,000 (and married couples can potentially contribute up to a total of $150,000) to an Account for a particular Designated Beneficiary in one year without triggering the tax. To do this the contributor must elect to treat the entire gift as a series of five equal annual gifts. The five-year prorating is elected by filing a gift tax return for the year in which the gift is made. If the Donor dies before the start of the fifth year, a portion of the contribution must be added back to the Donor's estate for tax purposes. You should consult with a tax advisor regarding the gift and estate tax consequences of contributing to (or making any other transaction with respect to) an account.
Who can open an account in the plan?
The OklahomaDream 529 Plan is open to any U.S. citizen or resident alien. In order to establish an account, you must have a valid Social Security or other taxpayer identification number and must have a valid U.S. residential address that is not a post office box. There are no income restrictions or state residency requirements for the OklahomaDream 529 Plan.
Who can be a beneficiary?
You may open an Account for the benefit of any person who is a U.S. citizen or legal U.S. resident, with a social security or tax identification number, including yourself. Such person may be your child, your grandchild, your spouse, another relative, or even someone not related to you. The Designated Beneficiary may be of any age. However, the Designated Beneficiary must be an individual person.
Can others open an account for the same beneficiary I have designated?
Yes. Other people can also open their own Accounts for the same Designated Beneficiary. The maximum contribution limit for the Plan is $300,000 per beneficiary and this includes contributions to the OklahomaDream 529 College Savings Plan.
Can I change the beneficiary on my account?
You can change the beneficiary on your account at any time provided that the new beneficiary is an eligible "Member of the Family" defined in Section 529. Under current law, a Member of the Family of a Designated Beneficiary is a person related to the Designated Beneficiary as follows:
- son or daughter, or a descendant of either (natural or legally-adopted);
- stepson or stepdaughter;
- brother, sister, stepbrother or stepsister;
- father or mother, or an ancestor of either;
- stepfather or stepmother;
- son or daughter of a brother or sister;
- brother or sister of the father or mother;
- son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law;
- spouse of the Designated Beneficiary or of any of the other foregoing individuals; or
- first cousin of the Designated Beneficiary.
What if my child (the Designated Beneficiary) does not go to college, or if the account assets exceed the Beneficiary's college costs?
You can use the funds for the Designated Beneficiary's graduate or professional school expenses, designate a new beneficiary who is a member of the Designated Beneficiary's family or, subject to the imposition of federal income taxes and penalty, close the Account by withdrawing all the funds. You also may leave the Account open — indefinitely — until you determine the proper course of action. Note that the normal 10% federal penalty and tax on the earnings withdrawn and the obligation to add the deductions taken back into your Oklahoma taxable income is not assessed if you terminate the account because the beneficiary has died or is disabled, or if you withdraw funds not needed for college because the beneficiary has received a scholarship equal to or less than the amounts withdrawn.
The minimum applicable if you contribute through an automatic investment plan (A/K/A, "Auto-Invest") is $250 (per portfolio) — with a required minimum monthly contribution of $50. You may terminate your participation in the automatic transfer program only at such time as you have contributed $1,000 in total to the Account.
Federal income tax law applicable to the Program requires that the Program prohibit contributions in excess of what is necessary to provide for the qualified education expenses of the Designated Beneficiary. An additional contribution may not be made to your Account to the extent that the amount of the contribution, when added to the balance of all accounts for the same Designated Beneficiary under the OklahomaDream 529 Plan.
What are the fees and expenses?
Account Owners will bear expenses at the Advisor Program level and also the expenses of investing in the Underlying Funds. For recent expenses of the Underlying Funds, please refer to the current Plan Disclosure Statement. Account Owners may select from among two available classes of Units, each with a different fee structure. All fees and charges applicable are subject to change from time to time.
Asset-Based Fees. At the Advisor Program level, the Account may be subject to an Advisor Program Management Fee and certain other asset-based fees. Such fees paid by the Account are received by the Advisor Program Distributor and Administrator, and there are no additional fees payable to the Board or to the State. The asset-based fees noted below for each class of Units are accrued daily and paid to the Program Distributor & Administrator monthly.
Program Management Fee
Servicing and Administrative Fee
Account Maintenance Fee. In addition to the Program expenses described above, each Account, unless certain conditions are met, will be subject to an annual Account Maintenance Fee of up to $20. This fee will be payable in installments of $5 each on the last business day of each calendar quarter and on the date on which an Account is closed.
One or more of the installments of the Account Maintenance Fee will be waived if any of the following conditions are met at the time the installment is due:
- an account maintains a balance in excess of $20,000 on each assessment date
- an Account Owner has Accounts for one or more Designated Beneficiaries where the aggregate value of all portfolio(s) in those Accounts equals or exceeds $50,000 on each assessment date;
- the Account Owner is an employee of Allianz Global Investors of America L.P. or a company affiliated with Allianz Global Investors of America L.P.;
- the Account Owner is a broker who is affiliated with a Selling Institution with whom the Program Manager has a selling agreement; or
- the Account Owner has selected the Auto-Invest option to contribute at least $50 per month automatically to the Account (please see the Account application for details on the Auto-Invest option). Auto-Invest is an option available for investors making systematic deductions from a bank account. If your account is subject to a fee, and you have more than one portfolio in your account, the fee will be applied to theportfolio with the lowest portfolio number. If you have questions about whether Auto-Invest applies to your contributions, please ask your financial advisor for additional details.
Sales Charges. In addition to the asset-based fees and annual Account Maintenance Fee, Account Owners investing in Class A (subject to certain exceptions) will pay an initial sales charge, all or a substantial portion of which will be paid to the Selling Institution through which Account Owner makes the investment. Account Owners with Class C Units will pay a deferred sales charge (also called a CDSC) on all withdrawals made within twelve months of contribution.
Amount of Contribution(s)
Initial Sales Charge
$0 - $99,999
$100,000 - $249,999
$250,000 - $499,999
$500,000 - $999,999
$1,000,000 + *
There are no sales charges or CDSC associated with purchases in the PIMCO Short Asset Investment Portfolio. If an Account
Owner exchanges Units of the PIMCO Short Asset Investment Portfolio on which the Account Owner did not incur an initial sales charge, an initial
sales charge will apply to the Units of the Investment Portfolio being purchased through the exchange.
*The current Maximum Balance Limit is $300,000 per Account/Designated Beneficiary and, therefore, investments in amounts than such limit are applicable to more than one Account by the same Account Owner or other contributor.
**An Account Owner purchasing $1,000,000 or more of Class A Units will pay a CDSC if he or she sells Units for which no initial sales charges were paid within 18 months of buying them. The amount of the CDSC will be 1.00%, which will be deducted from the Net Asset Value or the purchase price of the Shares, whichever is lower. The CDSC is calculated from the day that the purchase is accepted. Any earnings on contributions is not subject to a CDSC. Each purchase of Units has its own CDSC period, and, upon a withdrawal, Units that are not subject to a CDSC are sold first.
How do I open an Account?
You (the "Account Owner") may open an Account by contacting any broker or financial advisor authorized to place orders on your behalf for interests in the Trust (your "Advisor"). An Account is established by completing a (Program) Application Form — which is part of the Participation Agreement, and sending it together with a check to the Program's Transfer Agent (DST).
How do I make additional investments?
You may send money by check directly to the address listed on the account application, or ask your Advisor to do so, along with instructions on how to invest the contribution. You also may choose to make periodic contributions by automatic transfers from your bank account.
Where do I send contributions?
For accounts that are already established, you may send money by check payable to "OklahomaDream 529 Plan" directly to:
P.O. Box 55173
Boston, MA 02205-5173
c/o DST Systems Inc.
30 Dan Road
Canton, MA 02021-2809
Can anyone contribute to my account?
Yes. Anyone may make contributions to your Account(s), although the investment of the contribution will be directed in accordance with your instructions. Another contributor will not retain any control over, or rights to, his or her contribution (or any other portion of the Account) after the contribution is made. The other contributor will not receive any statements or other information with respect to the contribution or the Account. Any such contribution may have income, gift, estate or generation-skipping transfer tax consequences.
Can I contribute to more than one 529 plan?
There is no limit to the number of accounts a participant or beneficiary may have. In fact, participants and beneficiaries may have multiple accounts in multiple states.
Can I view my account balance online?
Yes, Account Owners and their Advisors can view current balances and recent transactions online. Click on the Account Access link at the top of this page to log on.
Rollovers and Transfers
Can I move money from another 529 plan to this 529 plan?
Yes. You may transfer funds from another qualified tuition program to your Account. In order to avoid federal income tax consequences, you must transfer such funds into the Account within 60 days after you have withdrawn the funds from the other qualified tuition program. In addition, the Designated Beneficiary of the Account to which the funds are transferred must be a person who is a Member of the Family of the beneficiary of the account from which the transfer is made. You may also transfer Funds from an account in another qualified tuition program for the benefit of the same Designated Beneficiary without tax or penalty, so long as such transfer does not occur within 12 months from the date of a previous transfer to any qualified tuition program for the same Designated Beneficiary. Contact your financial or tax advisor or the Plan Administrator for more information about how to complete such a transfer.
You also may transfer funds from your Account to an account in another qualified tuition program established under Section 529. In order to avoid federal income tax consequences, you must transfer such funds into the account within 60 days after you have withdrawn the funds from your Account. In addition, the beneficiary of the account in the other qualified tuition program must be a Member of the Family of your Account's Designated Beneficiary. You may also transfer funds to an account in another qualified tuition program for the benefit of the same Designated Beneficiary without federal income tax consequences so long as such transfer does not occur within 12 months from the date of a previous transfer to any qualified tuition program for the same Designated Beneficiary.
Can I move money from an UGMA/UTMA account to this 529 plan?
Yes. You can use money from a Uniform Gifts/Transfers to Minors (UGMA/UTMA) account to open a OklahomaDream 529 Plan account. Please keep in mind that you may incur capital gains taxes from the sale of the assets currently held in the UGMA/UTMA account.
Other restrictions may apply to these accounts. You should consult with your financial advisor or qualified tax professional before redeeming any assets from a UGMA/UTMA account.
Can I move money from a Coverdell Education Savings Account or a qualified U.S. savings bond?
Yes. You can contribute to the OklahomaDream 529 Plan using proceeds from the sale of a Coverdell Education Savings Account (formerly known as an Education IRA). You can also use proceeds from the redemption of a qualified U.S. savings bond.
Are there restrictions as to what schools I have to use my savings at?
You can use your savings at any qualified education institution that participates in certain federal student aid programs. This may be a college or graduate or professional school, or a post-secondary vocational or trade school, private or public, in your state or out-of-state. You should be certain that the school is accredited. If you use the money for any other purpose, including paying for costs associated with a non-accredited institution, you will not qualify for favorable tax treatment, and the earnings portion of your withdrawal for such purpose will be subject to applicable federal and state income tax and an additional 10% federal tax. You can verify whether a school is accredited on www.fafsa.ed.gov.
How can I use the money in my account?
You can use the money in the account when needed to pay for the "qualified education expenses," as defined in Section 529 of the Internal Revenue Code of 1986 ("Section 529"), of the person who is the Designated Beneficiary of the account.
Can I use my account to pay for any college?
Yes. You can get the full benefits from the Program if your Designated Beneficiary attends any qualified education institution that participates in certain federal student aid programs. This might be a college or graduate or professional school, or a post-secondary vocational or trade school, private or public, in your state or out-of-state.
You should be certain that the school is accredited. If you use the money to pay for costs associated with a non-accredited institution, you will not qualify for favorable tax treatment, and the earnings portion of your withdrawal for such purpose will be subject to federal income tax and a federal 10% penalty.
To learn more about eligible and accredited educational institutions, visit www.savingforcollege.com.
What are qualified expenses?
In general, tuition, fees, room, board, books, equipment and supplies necessary to attend an institution of education are considered qualified education expenses. Qualified education expenses also include expenses of a special needs beneficiary that are necessary in connection with his or her enrollment or attendance at a qualified education institution as defined in the Code.
In addition, starting January 1, 2018, 529 Plan account owners can withdrawal assets to pay for K-12 tuition (public, private or religious) up to $10,000 per year per beneficiary.
What if I need the money for something else?
You can withdraw all or any portion of the money in the account at any time for any purpose. If you use the money for any other purpose, including paying for costs associated with a non-accredited institution, you will not qualify for favorable tax treatment, and the earnings portion of your withdrawal for such purpose will be subject to applicable federal and state income tax and an additional 10% federal tax.