529 college savings plan benefits

Learning Quest At-A-Glance

Here is a summary of the features and benefits of a Learning Quest account. Click on a link to read more about the selected feature.

Feature Benefit
Tax advantages
  • Earnings grow tax-deferred
  • Qualified withdrawals are tax free1
  • Kansas taxpayers receive an annual adjusted gross income deduction of up to $3,000 ($6,000 if married, filing jointly) for contributions per beneficiary, per year
  • Estate planning: Reduce your personal taxable estate through accelerated gifting: make five years' worth of gifts (up to $70,000; $140,000 for married couples filing jointly) in one lump sum2
Affordable contributions
Generous maximum contribution limit
  • $370,000 per beneficiary
Flexible account owner eligibility
  • Any U.S. citizen or resident
  • No requirements on state residency, age, or income
  • Corporations, government entities, and not-for-profit organizations can open accounts
Easy to start
  • Individual investors: Just enter your information and select your investments
  • Investors using advisors: Contact your advisor to help choose from age-based tracks, static portfolios or individual fund options
Flexible to use
  • Use at any eligible 2- or 4-year college, vocational/technical school, or graduate school anywhere in the country - not just in Kansas
  • Use for tuition, mandatory fees, computers, books, supplies, and equipment, and certain room and board costs
Easy to manage
  • Manage your account 24/7 on the secure website
Professional investment management
Programs to help you save more
Real-time client service Speak with a Specialist, weekdays from 8 a.m. to 5 p.m. Central Time:
  • Individual investors: Call 1-800-579-2203
  • Investors using advisors: Call 1-877-882-6236

The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.

1 Earnings from non-qualified withdrawals are subject to federal and state income taxes and a 10% federal penalty tax.
2 This provision is unique to 529 Plans such as Learning Quest. To qualify, you'll need to file IRS Form 709 (Instructions for Form 709) to treat the gift as if it were made in equal payments over five years. To avoid gift tax, you should make no additional gifts to the beneficiary during that time. If a new beneficiary is named for the account who is two or more generations younger than the current beneficiary, a generation-skipping tax may apply. We suggest you consult a tax advisor to determine if you need to file this form. No additional gifts can be made to that beneficiary over the next four years after the year in which the one-time gift is made. If the donor of an accelerated gift dies within the five-year period, a portion of the transferred amount will be included in the donor's estate for estate tax purposes. Consult with tax advisor regarding your specific situation.
3 Upromise is an optional service offered by Upromise, Inc., is separate from Learning Quest, and is not affiliated with the State of Kansas. Specific terms and conditions apply. Participating companies, contribution levels and conditions subject to change without notice. Transfers subject to a $25 minimum.

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 Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.