{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-6-101.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-6-101.1","heading":"Annuity contracts, custodial accounts or face amount","body":"investment annuity certificates - Teachers or employees.\n\nA. A part of the salary, not to exceed the limitations on\n\ndeferrals provided in Section 403(b) of the Internal Revenue Code of\n\n1986, as amended, payable to a teacher or employee by a school\n\ndistrict may, at the election of such teacher or employee, be\n\ndeferred for the investment in an annuity contract from any\n\ninsurance company authorized to do business in Oklahoma or by the\n\ninvestment in shares of regulated investment companies to be held in\n\na custodial account as authorized by Section 403(b)(7) of the\n\nInternal Revenue Code of 1986, as amended, or by the investment in a\n\nface amount investment annuity certificate issued by a company\n\nauthorized to do business in Oklahoma by the district for the\n\nteacher or employee, provided that such teacher or employee is\n\neligible to defer a portion of their salary under the terms of the\n\nschool district's 403(b) plan; and the teacher or employee shall be\n\nentitled to have such annuity contract, custodial account or face\n\namount investment annuity certificate continued in force in\n\nsucceeding years by such school district or any other school\n\ndistrict subsequently employing the teacher. Provided, that such\n\namounts contributed or paid by a school district must be made to\n\nvendors approved by such school district as eligible to receive the\n\nelective deferrals. Provided further, that a school district may\n\nrevoke a previously approved vendor’s eligibility to receive\n\nelective deferrals, thereby prohibiting future contributions or\n\npayments to such vendor until it regains its eligibility through\n\nsubsequent approval from such school district. The amounts so\n\ncontributed or paid by the school district for the annuity contract,\n\ncustodial account or face amount investment annuity certificate, or\n\nto continue it in force, shall be considered as payment of salary,\n\nfor the same amounts, to the teacher or employee for State Aid\n\npurposes, Teachers' Retirement System purposes, or Social Security\n\npurposes, but not for state income tax purposes. Provided that the\n\namount received under such annuity contracts, custodial accounts or\n\nface amount investment annuity certificates shall be income subject\n\nto state income tax when actually received, unless otherwise exempt\n\nfrom income tax.\n\nB. The provisions of subsection A of this section shall also\n\napply to employees of institutions, agencies and boards comprising\n\nThe Oklahoma State System of Higher Education who are eligible to\n\ndefer a portion of their salary under the terms of such institution,\n\nagency or board's 403(b) plan. Such institutions, agencies and\n\nboards may purchase annuity contracts, custodial accounts or face\n\namount investment annuity certificates from vendors approved by such\n\ninstitution, agency or board as eligible to receive such\n\ncontributions or payments, provided that such vendor is:\n\n1. An insurance company authorized to do business in Oklahoma;\n\n2. A life insurance or annuity company organized and operated,\n\nwithout profit to any private shareholder or individual, exclusively\n\nfor the purpose of aiding and strengthening educational institutions\n\nby issuing insurance and annuity contracts only to or for the\n\nbenefit of such institutions and individuals engaged in the services\n\nof such institutions; or\n\n3. A broker dealer licensed to sell shares of regulated\n\ninvestment companies to be held in custodial accounts as authorized\n\nby Section 403(b)(7) of the Internal Revenue Code of 1986, as\n\namended.\n\nProvided further, that an institution, agency or board may\n\nrevoke a previously approved vendor’s eligibility to receive\n\nelective deferrals, thereby prohibiting future contributions or\n\npayments to such vendor until it regains its eligibility through\n\nsubsequent approval from such institution, agency or board.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ce0a0efa7739daf52a1e37e1a263fdb65b09ee9f4df056f130038c975920b2a4","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-6-101","next":"us-ok/okla.-stat.-tit.-70-70-6-101.10"},"notice":"GroundRules: Original legal text. Not legal advice."}