Oregon 529 Plan And College Savings Options

Oregon has a 529 plan called Oregon College Savings Plan that can help you save for college. Oregon also has a 529 Able Plan as well.

If you live in Oregon, these might be good options for you to save for college. 

These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.

If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?

There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Oregon. Each state has different rules when it comes to 529 plan savings. Here are the Oregon 529 plan rules.

Average Cost Of College In Oregon

When saving for college in Oregon, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.

There are 70 colleges and universities in the State of Oregon.

The total average cost of college (Cost of Attendance) in Oregon for in-state residents is $21,592 for 2023. This includes tuition, room and board, books and supplies, and other expenses.  

For just tuition alone, the average undergraduate tuition for in-state residents is $8,078 for 2023. The cost of tuition in Oregon has been rising at about 3% per year.

See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.

Oregon 529 Plan Tax Information

Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free. 

Here are the special tax benefits and considerations for using a 529 plan in Oregon.

Contributions

Oregon is one of the few states that offers a tax credit for contributions - you can get up to $170 if you file single or $340 if you file married filing jointly.

Minimum: $25

Maximum: Accepts contributions until all account balances for the same beneficiary reach $400,000.

Matching Contributions: The Oregon Baby Grad Program will provide a one-time contribution of $25 to families that open an Oregon College Savings Plan account by their child's first birthday.

Rollovers

Rollovers follow federal tax treatment.

Qualified Distributions

Qualified distributions from an Oregon and non-Oregon 529 plan are tax-free. 

K-12 Education

Oregon does not conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.

Student Loans

Oregon does not conform with Federal law for using a 529 plan for student loans.

Rollover To Roth IRA

Oregon does allow the rollover to a Roth IRA up to $35,000. Learn more about the 529 plan to Roth IRA rollover here.

Non-Qualified Distributions Taxes, Penalties, Recapture

A non-qualified withdrawal from an Oregon 529 is subject to Oregon income tax up to recapture of prior tax deductions and tax credits received.

Oregon 529 College Savings Plan Options

Oregon has several 529 plan options - one consumer plan and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this). 

Oregon College Savings Plan

The Oregon College Savings Plan is the name of Oregon's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.

The funds offered include Vanguard,T. Rowe Price, and TIAA.

Fees:

There is a program management fee of 0.20%.

The underlying funds all charge expense ratios from 0.02% to 0.47% depending on the investment option.

Who Should Use It:

We recommend that Oregon residents use the Oregon College Savings plan due to the tax benefits, low fees, and plan investment options.

We recommend that out-of-state residents consider this plan.

Oregon 529 Able Plan Options

529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here. 

ABLEforAll

The ABLEforAll Plan is a 529A plan open to all residents in Oregon.

This plan allows contributions of up to $18,000 per year from all sources.

It does have a minimum initial contribution amount of $25 per account. The minimum subsequent contribution amount is $10.

The plan does have an account maintenance fee of $35 annually. It also has a program management fee of 0.30%.

You can open an ABLEforAll Plan here.

Other Programs To Save For College

A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.

If you're looking for ways to boost your college savings, check this out:

Backer

Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.

Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.

Check out Backer here >>

Upromise

Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.

Check out Upromise here >>

Oregon Financial Aid

Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.

Check out the list of Oregon Student Loan and Financial Aid Programs.