Changes planned in state College Savings Plan program
Saturday, December 25th 2004, 4:25 pm
By: News On 6
OKLAHOMA CITY (AP) _ Legislation is planned next year to make it easier for Oklahomans to invest in a child's education through the state's College Savings Plan.
The proposals, supported by state Treasurer Robert Butkin, would change limits that allow parents and others to contribute up to $2,500 a year to a college savings account.
``We would like to see the contribution amount changed to $10,000 per taxpayer every year,'' Butkin said.
Currently taxpayers can contribute up to $2,500 for each account. That means taxpayers who contribute $2,500 to four accounts could have a $10,000 tax credit on their state tax.
But Butkin said that has been confusing to parents and grandparents who sometimes miss out on taking the deduction for every account.
The $10,000 limit could be for only one account or spread out in several accounts, Butkin said.
Another change supported by Butkin would extend the contribution deadline for tax credits for plan contributions to April 15. Currently, a tax credit can be taken for a contribution made during the calendar year.
The change would allow taxpayers to contribute to a college savings plan until April 15 and receive a tax credit for the previous year.
Oklahoma's College Savings Plan is one of the premier programs in the country because it offers a tax credit.
Unlike plans in other states, the Oklahoma College Savings Plan allows parents and their children to have a choice of schools, including private colleges and universities, trade or graduate schools in Oklahoma or another state.