The SEED OK Account is a special account in the Oklahoma College Savings Plan “seeded” with $1,000 for your child’s future. The State of Oklahoma owns the account, but only your child benefits from the money. Money in the SEED OK Account is invested in the Balanced Option for your child’s education after high school.
SEED OK Frequently Asked Questions
Only the State can put money into the SEED OK Account. But you can open your own Oklahoma College Savings Plan (called Your Account) and save for your child. If you opened your own account, you may have been eligible to receive a Savings Match during 2008-2011.
1. Open your Oklahoma College Savings Plan Account by mail or online.
2. Mail the Match Eligibility Form to the State
3. You or family and friends can save money in Your Account at any time.
The Savings Match was a SEED OK incentive for you to save for your child’s future. To have received this match, you must have opened your own Oklahoma College Savings Plan (Your Account). When you deposited money in Your Account, you may have been eligible for a $1 to $1 or $0.50 to $1 match. The match was placed in your child’s SEED OK Account. If you open Your Account, your child will have two Oklahoma College Savings Plan accounts:
|SEED OK Account||The State opened||Your child||State owns for the benefit of your child||$1000 and the opportunity for up to $250 or $125 Savings Match each year through 2011||Balanced Option|
|Your Account||You open||The same child as on the SEED OK Account||You own||When you choose to save $25 or more||You choose among the Plan investment options|
Savings Match eligibility was based on SEED OK treatment participants’ federal adjusted gross income. How much Savings Match you received depended on the deposits you made into Your Account.
|Your Adjusted Gross Income||Match Rate||With Yearly Deposits of||Your Savings is Matched|
|Below $29000||When you deposited $1.00 the State deposited $1.00||$25 to $250+||$25 to $250|
|$29000 to $43499||When you deposited $1.00 the State deposited $0.50||$25 to $250+||$12.50 to $125|
|$43500 or more||Not eligible||$25 to $250+||$0|
If your adjusted gross income was less than $29,000, the largest match you were eligible to receive was $250 per year. For example, if you saved $250 or more in Your Account during 2008-2011, then you child's SEED OK Account was eligible to receive $250 per year.
If your adjusted gross income was $29,000 to $43,499, the largest match you were eligible to receive was $125 per year. For example, if you saved $250 or more in Your Account during 2008-2011, then your child's SEED OK Account was eligible to receive $125 per year.
Your federal adjusted gross income is an amount that you report to the Oklahoma Tax Commission when you file a State income tax return. The State used your income from earlier tax returns because more current records were not available when the Savings Match was calculated. For example:
|Match eligibility for deposits you made in||Would have been determined by income on your return from tax year|
Yes. If you did not file an Oklahoma Tax Return because your income was below the amount required for filing in a given year, you could have qualified for the Savings Match, even if you received Food Stamps, Medicaid, or Temporary Assistance for Needy Families (TANF) benefits from the State in that same tax year. The Oklahoma Department of Human Services determined if you received these benefits.
The State used this form to check if you qualified for the Savings Match. To protect your privacy, the Oklahoma Tax Commission and Department of Human Services may only release information to the State with your written permission. This form gives that permission.
The savings match ended in 2011. It is no longer necessary to return the Match Eligibility Form.
The savings match incentive was available from 2008 - 2011. During that time, when you deposit money in Your Account, your savings was matched in the next quarter. For example, if you saved money in Your Account in in August 2011, the Savings Match was deposited in your child's SEED OK Account between October and December 2011.
Yes! There are many reasons why you should open an account.
• Save for your child’s education.
• Receive tax benefits. (See Disclosure Booklet.)
The savings match incentive was available from 2008-2011. During that time, only you—the individual who completed the SEED OK Study phone interview—could have qualified to receive the Savings Match.
OKLAHOMA COLLEGE SAVINGS PLAN
Accounts opened after April 15, 2009 require you to make a $100 minimum initial contribution
The Oklahoma College Savings Plan is a state-sponsored education savings program created to help families save for college. It includes investment options to help you with your investment goals, plus features that may help make investing more affordable.
No. The money in Your Account and the SEED OK Account may be used at both in-state or out-of-state eligible educational institution. This includes public and private colleges and universities, graduate and post-graduate schools, community colleges, and certain proprietary and vocational schools.
The federal government establishes eligibility for federal financial aid. These rules may change before your child enters college. Also, state financial aid policies and the policies of individual colleges may vary.
- SEED OK Account: Based on current federal rules, savings in this account should not impact the student’s eligibility for federal financial aid.
- Your Account: Current federal rules expect a limited portion of parents’ savings to be spent each year for their child’s college education, up to a maximum of 12 percent. Due to protections in the financial aid formula, this percentage is usually lower for most families. Depending on parents’ income at the time your child goes to college, the money saved in Your Account may not be considered at all.
- SEED OK Account: Under current program guidelines, the money in this account will not affect your eligibility for federal or state benefits administered by the Oklahoma Department of Human Services since neither you nor your child can directly access this money.
- Your Account: Effective November 1, 2008, money in Your Account will not affect your eligibility for Food Stamps, Low Income Home Energy Assistance Program (LIHEAP), and TANF. This money is also not considered in determining your eligibility for the Child Care and certain SoonerCare (Medicaid) Programs. Under current program guidelines, since you will have control over Your Account, it will be considered as an available resource in determining your eligibility for some SoonerCare (Medicaid) Programs, State Supplemental Payments (SSP), and Supplemental Security Income (SSI). For questions about how money might affect a specific benefit, please contact the Oklahoma Department of Human Services at (866) 411-1877 or visit their website.
There are no future contributions required, but we encourage you or family and friends to make additional deposits to Your Account. If you do add to your account, the minimum deposit is $25 per investment option. If your employer allows payroll deduction, the minimum subsequent contribution to an account may be as low as $15 per investment option, per pay period.
You can save money by:
- Writing a check and mailing it to the Oklahoma College Savings Plan
- Setting up an automatic contribution plan through your bank
- Enrolling in payroll deduction with your employer
The child identified by name and Social Security Number on the SEED OK Account would have needed to have been the beneficiary of Your Account to have possibly qualified for the Savings Match (available from 2008-2011). To save for your other children’s future, you can open Oklahoma College Savings Plan accounts for each of them. These accounts will not be part of the SEED OK study. You can also change the beneficiary of Your Account to another family member after the SEED OK study ends in 2014.
If you—the person who completed the SEED OK Study phone interview—already owns an Oklahoma College Savings Plan account for your child, you do not need to open another account. This account will become Your Account and possibly qualify for the Savings Match (available from 2008-2011).
- SEED OK Account: The money will remain available until your child reaches age 30. If your child does not use this money by age 30, the funds will be used for other Oklahoma families.
- Your Account: Money may be used for your child's post-secondary education at any age. You can also change the beneficiary of Your Account to another family member after the SEED OK study ends in 2014.
If you move to another state, the State of Oklahoma will maintain the SEED OK Account and Your Account. Your child will still be able to use the money for education after high school.