Overview of 529 Plans
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About 529 College Savings Plans

What is a 529 College Savings Plan? A tax-advantaged plan administered by a state that is designed to help people save for the expenses of a college education. The state usually contracts an investment management firm as program manager who provides a variety of investment choices. You invest in the portfolio(s) of your choice that may be appropriate for your risk tolerance and investing time horizon.
 
 Is a 529 Plan right for me? Try our calculator.  
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Tax Benefits

What are the tax benefits?
  • Any earnings grow tax deferred at the federal and Kansas state levels.1
  • The earnings portion of withdrawals used to pay for qualified education expenses is tax free at the federal and Kansas state levels.1,2,3
  • No federal gift tax on contributions per beneficiary up to $65,000 ($130,000 for spousal gifts) in a single year.
  • Generally, contributions to the account are removed from your taxable estate.
     More about Estate and Gift Tax Benefits and IRS Form 709
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Investments of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
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Eligible Colleges

What colleges can I attend? Any U.S. accredited public or private college or university, graduate school, community college, and vocational and technical schools.
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Withdrawals

What college expenses are eligible for qualified withdrawals? Tuition, fees, books, required supplies, equipment and room and board at any qualified educational institution in the U.S.  More about Qualified Withdrawals
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Account Control

Who controls the assets and withdrawals?
  • A 529 Plan account generally has an account owner and a beneficiary.
  • The account owner maintains control of the account, which includes making withdrawals and any changes to the beneficiary or investment.
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How to Invest

How can I invest in with Kansas 529 Plan? There are three ways people invest with a Kansas 529 plan:

 Individual Investors - Invest directly.
 Investors Using Advisors - Invest through a financial advisor.
 Investing through Schwab - Invest through Charles Schwab & Co., Inc
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The availability of tax or other benefits may be conditioned on meeting certain requirements.

(1) Check with your tax advisor for your state's rules.

(2) Nonqualified withdrawals are subject to federal and state income taxes and a 10% federal penalty tax.

(3) Kansas taxpayers may invest in any state-sponsored 529 Plan and receive a Kansas adjusted gross income deduction for their contributions. This deduction applies to contributions of up to $3,000 per beneficiary, per year ($6,000 if married, filing jointly).


Before investing, carefully consider the plan's investment objectives, risks, charges and expenses. This information and more about the plan can be found in the Learning Quest Handbook, available by contacting your financial advisor or American Century Investment Services, Inc., Distributor and Underwriter, and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary's home state offers a 529 Plan that provides its taxpayers with state tax and other benefits not available through this plan.

As with any investment, withdrawal value may be more or less than the original investment.

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