Oklahoma’s 529 College Savings Plan (OCSP)

The Cost of College

Use our College Planner Mobile App to learn more.

Based on four years of average tuition and fees for 2010-2011 and assumed to increase 6% annually.

Source: SavingforCollege.com, “The real cost of higher education” and The College Board®. (This is a hypothetical example for illustrative purposes only).

4-Year Public College

$300,000

$200,000

$100,000

$02010 2028 20282010

$400,000

$33,300

$95,000$119,400

$340,800

4-Year Private College

Experienced Plan Manager

TIAA-CREF

•Over 90-Year History Serving those in Higher Education

•Full service financial services group of companies and one of America’s largest

TIAA-CREF Tuition Financing, Inc. (TFI)

•Affiliate of the TIAA-CREF group of companies

•Plan Manager for OCSP since April 2000

•Industry leader in managing 11 State 529 College Savings Programs since 529 plans launched in 1999

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TFI, launched in 1999, serves 11 states

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OCSP• Oklahoma’s direct-sold 529 plan managed by the

Oklahoma Treasury

• Approximately $580 million in assets as of October 18, 2013

• More than 50,000 accounts opened as of October 18, 2013

• OK4saving.org

Did you know ?

OCSP allows for contributions up to $300,000 per beneficiary.

How does a 529 Plan work?

A College EducationAccount Owner

•No income limitations

•No residency required

•Full control

Beneficiary = Future Student

•No age restrictions

•No time restrictions

•No residence requirement

•Beneficiary can be changed to another eligible family member

Tax Advantages

Account contributions are made after-tax.

Contributions can reduce your Oklahoma taxable income each year up to $10,000 per individual or $20,000 per married couple. (See the Disclosure Booklet for details.)

Any earnings have the opportunity to grow:•Tax-deferred

•Any account earnings grow tax-deferred •Tax-free

•Withdrawals of any earnings for qualified higher education expenses are free of federal and Oklahoma state income tax

Did you know?

Oklahoma provides a five-year carry-forward for excess contributions.

Estate Planning/Gifting

Estate Planning Benefits

•Contributions are considered a completed gift and are eligible for the annual $13,000 gift tax exemption

•A $65,000 one-time gift may be prorated over five years

•All contributions are removed from the taxable estate

Completed gift to the beneficiary

•$13,000 per beneficiary per year

•$26,000 per married couple

•Give up to five years ($65,000/$130,000 per couple) in one year

Low Fees

Total annual plan fees are under 100 basis points for every investment option. The Guaranteed Option is offered without a fee.

•No application fee

•No transfer fee

•No commissions paid on accounts

•No sales fees

•No annual account maintenance fee

Review the Plan Disclosure Booklet or visit OK4saving.org for a list of fees and descriptions.

Did you know?

OCSP is among the lower cost 529 plans in the country.

Who can I contribute for?

Beneficiaries may include:• Your child• Your grandchild or great-grand child• Your niece or nephew• Your friend or other relative• Yourself

Flexible Choices

Can be used at eligible higher education institutions nationwide (and many abroad), including;

• College

• University

• Technical Colleges

• Any type of degree or certificate program

• Graduate degrees included

For a list of applicable international schools, visit OK4saving.org.

Ease in using the account

The account can be used for a variety of qualified expenses, including:

•Tuition

•Mandatory Fees

•Certain Room and Board Costs*

•Books

•Mandatory Equipment and Supplies

Did you know?

Computers are considered a qualified expense if required for a course.

* Student must be enrolled half the time of a full time course of study. See the Disclosure Booklet for more information.

Non-Qualified Withdrawals

• The earnings portion, if any, of non-qualified Withdrawal due to death, disability, or receipt of scholarship or attendance at a Military Academy by the designated beneficiary is subject to applicable federal and state income tax, if any.

• The earnings portion, if any, of a non-Qualified Withdrawal not due to death, disability or receipt of scholarship or attendance at a Military Academy is subject to applicable federal and state income tax, plus a 10% additional federal tax.

Easily access your account

• Only the account owner can take a withdrawal.

• Withdrawals can be requested­ By Form­ Online ­ Smartphone

• A withdrawal can be sent directly to:­ Account Owner­ Institution­ Beneficiary/Institution

• Receipts are not required to withdraw funds.

• Account owners should maintain records of their withdrawals and keep their receipts.

Wide range of investment optionsNine different investment options to choose from. You can select one

or any combination that best meets your investment objectives.

Age-Based

­Moderate Managed Allocation

­Conservative Managed Allocation

­Aggressive Managed Allocation

Multi-Fund

­Diversified Equity Option

­Global Equity Index Option

­Balanced Option

­Fixed Income Option

Single-Fund

­U.S. Equity Index Option

Capital Preservation

­Guaranteed Option

Age-Based Investment Option Example

Sample allocation of an age-based portfolio designed for a child age 0-3*

*Risk level shifts from aggressive to conservative as the beneficiary ages. Allocations automatically change over time. For illustrative purposes only.

Refer to the Disclosure Booklet for the underlying mutual fund allocations for each Age-Based Option.

Diversified Equity Option

Global Equity Index Option

Risk Level: Aggressive

Investment Strategy: Invests in multiple mutual funds that are activelyManaged.

Risk Level: Aggressive

Investment Strategy: Invests in four mutual funds. Three of the mutual funds are considered “index funds,” meaning that the mutual fund attempts to track a benchmark index. The remaining mutual fund is actively managed.

Refer to the Disclosure Booklet for the underlying mutual fund allocations for each of the above investment options.

Balanced Option

Fixed Income Option

Risk Level: Moderate

Investment Strategy: Invests in multiple mutual funds with an approximate60% allocation to equity funds and 40% to bond funds. Seeks to provide a favorable return that reflects the broad investment performance of the financialmarkets.

Risk Level: Moderate

Investment Strategy: Invests in 100% of its assets in mutual funds that invest primarily in debt securities.

Refer to the Disclosure Booklet for the underlying mutual fund allocations for each of the above investment options.

Capital Preservation Option

• Guaranteed Option*­ Assets allocated to a funding agreement­ Issued by TIAA-CREF Life Insurance Company (TIAA-

CREF Life)­ Current rate of 1.15% until March 31, 2014

U.S. Equity Index OptionRisk Level: Aggressive

Investment Strategy: Invests 100% of its assets in one “index fund” meaning that the fund attempts to track a benchmark index.

Choosing your Investment Option

• Choose an investment option based on your time frame and risk tolerance

• Risk tolerance questionnaire available at ok4saving.org

• You may choose more than one investment option or a different investment option at anytime

• You may transfer funds from one investment option to another one time per calendar year

Easy to get started

• Go to OK4saving.org for easy, online opening.

• Open for as little as $100, with:­ Checks­ Electronic Bank Transfer­ Automatic Contribution Plan­ Payroll Deduction/Direct Deposit, if employer

allows­ Gifts from family members and friends

­ Account owners need beneficiary name and date of birth, Social Security Number or federal Taxpayer Identification Number

Call us toll-free to speak with a college savings plan specialist at (877) 654-7284.

Educational video available at OK4saving.org.

Important DisclosuresConsider the investment objectives, risks, charges and expenses before investing in the Oklahoma College Savings Plan. Visit OK4saving.org, or call the Plan, for a Disclosure Booklet containing this and other information. Read it carefully.

Before investing in a 529 plan, consider whether the state where you or your Beneficiary resides has a 529 plan that offers favorable state tax benefits that are available if you invest in that state’s 529 plan.

The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice, based on their own particular circumstances, from an independent tax advisor.*Investments in the Plan are neither insured nor guaranteed except for TIAA-CREF Life Insurance Company’s guarantee to the Oklahoma College Savings Plan under the Funding Agreement for the Guaranteed Option, and there is a risk of investment loss. Account values will fluctuate based on a number of factors including general market conditions. Withdrawals that are not used for qualified higher education expenses may be subject to federal income tax and any applicable state income tax, as well as an additional 10% federal tax.TIAA-CREF Tuition Financing, Inc., Plan Manager.

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