|
About the SEED OK Account
What is the SEED OK Account?
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 for your child’s education after high school.
When will the SEED OK Account be opened?
The State of Oklahoma has already opened a SEED OK Account for your child. Every three months your child will receive a statement showing how much money is in the account.
How is money in the SEED OK Account invested?
The State has invested the $1,000 in the Balanced Option. This mix of stocks and bonds was chosen because your child is young, and the money will be in the account for a long time. Please read the enclosed Disclosure Booklet or visit www.ok4saving.org for more information.
Can I put money into the SEED OK Account?
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 open your own account, you may qualify for a Savings Match.
Back to top.
About the Savings Match
Please read the Savings Match Terms for complete details.
What is the Savings Match? How does it work?
The Savings Match is a SEED OK incentive for you to save for your child’s future. To receive this match, you must open your own Oklahoma College Savings Plan (Your Account). When you save money in Your Account, you may be eligible for a $1 to $1 or $0.50 to $1 match in 2008, 2009, 2010, and 2011. This match will be placed in your child’s SEED OK Account.
The largest match you can receive each year is $250 or $125. For example, if you save $300 in Your Account in 2008 and your income qualifies for the Savings Match, then your child’s SEED OK Account will receive either $250 or $125.
If you open Your Account, your child will have two Oklahoma College Savings Plan accounts:
Do I qualify for the Savings Match? If so, how much?
Your Savings Match eligibility is based on your federal adjusted gross income. How much Savings Match you receive depends on the deposits you make into Your Account.
The Savings Match income ranges may increase in future years. The State will notify you of any changes.
What is my federal adjusted gross income? How will it be used?
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 will use your income from earlier tax returns because more current records will not be available when the Savings Match is calculated. For example:
If I did not file an Oklahoma Tax Return, can I still qualify for the Match?
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 can qualify for the Savings Match if you received Food Stamps, Medicaid, or Temporary Assistance for Needy Families (TANF) benefits from the State in that same year. The Oklahoma Department of Human Services will check if you received these benefits. If you were not required to file for other reasons, see the Savings Match Terms.
What must I do to receive the Savings Match?
1. Open an Oklahoma College Savings Plan account for your child (if you open Your Account by August 31, 2008, you will be eligible for a one-time offer: see Opening Your Oklahoma College Savings Plan Account);
2. Complete, sign, and return the Match Eligibility Form to the State, and;
3. Save money in Your Account.
Why do I need to fill out and sign the Match Eligibility Form?
The State will use this form to check if you qualify 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.
When do I need to return the Match Eligibility Form?
Sign and return the Match Eligibility Form now, so your deposits can be matched as soon as possible. You only need to fill out, sign and return this form once. It will be valid until the SEED OK Study ends.
When will my savings be matched?
Any time you deposit money in Your Account, your savings will be matched in the next quarter. For example, if you save money in Your Account in June 2008, the Savings Match will be deposited in your child’s SEED OK Account between July and September 2008.
I may not qualify for the Match. Should I open an account anyway?
Yes! There are many reasons why you should open an account.
• Save for your child’s education.
• Receive tax benefits. (See Disclosure Booklet.)
• Qualify later for the Savings Match if your income or the SEED OK income ranges change. (See Savings Match Terms.)
What if someone else opens an account for my child? Can they get the Match?
No. Only you—the individual who completed the SEED OK Study phone interview—can qualify for the Savings Match.
Back to top.
Opening Your OCSP Account (for SEED OK only)
Please read the Disclosure Booklet before opening Your Account.
Why is saving for college important?
College is an important ingredient for success. It offers the opportunity to gain knowledge and skills to last a lifetime, discover new ideas, and make lasting friendships. College graduates may have better health, live longer, and have higher earnings than someone with a high school diploma. With a new child, the need to save for college may seem far off. But by starting to save today, paying for college may be easier to achieve.
How can I open my account?
You can open Your Account either by mail or through the internet. See the Disclosure Booklet for complete details.
• Mail: Fill out an account application and mail it to the Oklahoma College Savings Plan.
• Internet: Open Your Account online by visiting the Oklahoma College Savings Plan website.
How much money do I need to open my account?
Typically, a $100 minimum initial contribution is required. However, if you open Your Account by August 31, 2008, the State will deposit the $100 minimum initial contribution for you, directly into Your Account. This $100 is not eligible for the Savings Match. Accounts opened after August 31, 2008 require you to make the $100 initial contribution.
Once I open my account, is there a minimum amount to contribute?
The minimum subsequent contribution to an account 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.
How can I save in my account?
You can save money by:
• Writing a check
• Setting up an automatic contribution plan through your bank
• Enrolling in payroll deduction with your employer
I have more than one child. Which child should be the beneficiary?
The child identified by name and Social Security Number on the SEED OK Account must be the beneficiary of Your Account to receive the $100 deposit (for opening the account by August 31, 2008) and possibly qualify for the Savings Match. To save for your other children’s future, you can open Oklahoma College Savings Plan accounts for each child. These accounts will not be part of the SEED OK Study.
How do I keep track of my account?
You will receive a statement every three months that shows Your Account activity. You will also have online access to Your Account information 24 hours a day.
What if I already have an Oklahoma College Savings Plan for my child?
If you—the individual who completed the SEED OK Study phone interview—already own 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.
Back to top.
About the Oklahoma College Savings Plan
Please read the Disclosure Booklet or visit www.ok4saving.org for complete details.
What is the Oklahoma College Savings Plan?
The Oklahoma College Savings Plan is a state-sponsored education savings program created specifically for the purpose of helping families save for college. It includes investment options to help you with your investment goals, plus features that may help make investing more affordable.
Will my child have to use the money at an Oklahoma college?
No. The money in Your Account and the SEED OK Account may be used at any 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.
How will money in an account affect my child’s financial aid eligibility?
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.
How will money in an account affect any federal or state benefits?
• 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: 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 Food Stamps, Low Income Home Energy Assistance Program (LIHEAP), some SoonerCare (Medicaid) Programs, State Supplemental Payments (SSP), Supplemental Security Income (SSI), and TANF. Resources are not considered in determining your eligibility for the Child Care and certain SoonerCare (Medicaid) Programs. For questions about how money might affect a specific benefit, please contact the Oklahoma Department of Human Services at (866) 411-1877 or visit www.okdhs.org.
Back to top.
What if…
My child does not attend college or another degree program soon after high school?
• 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 at any age.
We move out of Oklahoma?
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.
Back to top.
Future Study Interviews
When will I be interviewed again for the SEED OK Study?
RTI International will contact you for two more interviews in the next seven years. You will receive $40 for each interview and $10 each time a researcher confirms your address and telephone number between interviews. All information will be kept completely confidential.
How do I know that my information will be kept confidential?
All information is protected by the federal Privacy Act of 1974 and will not be revealed to anyone other than authorized SEED OK researchers.
Why should I trust the researchers to keep my information confidential?
The SEED OK researchers take your privacy seriously. As a condition of employment, each researcher must successfully complete training on confidentiality. Also, the research process will be monitored regularly by committees that manage research staff to make sure that your information is protected.
Back to top.
More Information
The information in these Frequently Asked Questions is meant to answer general questions you may have about SEED OK. For complete details about the Oklahoma College Savings Plan, please read the Disclosure Booklet. For details about the Savings Match, see the Savings Match Terms.
If I still have questions, who should I contact about the…
Savings Match or Match Eligibility Form,
call the State of Oklahoma at 1-866-SEED4OK (1-866-733-3465).
Oklahoma College Savings Plan,
call a college savings plan expert at 1-877-OK4SAVING (1-877-654-7248).
Future SEED OK Interviews,
call RTI International at 1-877-SEED4OK (1-877-733-3465).
Back to top.
Next Steps
Back to top.
More Information for SEED OK Participants
|
