Learning Quest 529 Plan Details
The Learning Quest 529 Education Savings Program was established by the State of Kansas and is managed by American Century Investment Management, Inc. It offers anyone who is a U.S. citizen or resident alien an easy way to invest for higher education.
A 529 education savings plan is a tax-advantaged investment vehicle designed to support qualified education expenses. Congress created 529 Education Savings Plans in 1996 under Section 529 of the Internal Revenue Code, and all 529 Plans are affiliated with a State sponsor.
The availability of tax or other state benefits (such as financial aid, scholarship funds and protection from creditors) may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.
The account owner(s) select from a list of portfolio(s) based on factors such as their risk tolerance and the length of time until the 529 assets will be used.
A 529 education savings plan is a tax-advantaged investment vehicle designed to support qualified education expenses.
- K-12 schools (tuition only)
- 2- or 4-year public or private colleges and universities
- Graduate schools
- Vocational/technical schools
Qualified 529 withdrawals can be used for the following:
- Required fees, computers, books and equipment
- Certain room and board costs
Unlike many other college investment vehicles where the beneficiary "owns" the assets within the account, the 529 account owner controls and owns the college savings account. This includes:
- Making 529 withdrawals
- Changing the beneficiary
- Choosing 529 investment options
For ownership questions relating to UGMA/UTMA see page 6 of the Learning Quest Handbook.
Students who expect to graduate from a four-year college and have an account are approximately seven times more likely to attend college than youth without an account.1
Other advantages to investing in the Learning Quest 529 Education Savings Program include:
- Tax Benefits — Earnings grow tax-deferred and qualified withdrawals are tax free, which means more money in your pocket. Other benefits include state tax advantages, federal gift and estate planning benefits. It’s the smart way to save! The availability of tax or other state benefits (such as financial aid, scholarship funds and protection from creditors) may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.
- Plan Flexibility — Funds may be used at accredited higher education institutions anywhere in the United States such as 2- or 4-year college, vocational school or technical college, and graduate school. Funds may also be used at any K-12 education institutions. Your child does NOT need to attend college in your home state.
- Control — You're in the driver's seat. You choose how and when to contribute. You also choose the 529 investment option that works best for you and your family depending on your comfort level and goals.
- Easy to Start and Manage — All you need is a few minutes to open an account.
1 The Role of Savings and Wealth in Reducing "Wilt" between Expectations and College Attendance. William Elliott III and Sondra Beverly, Center for Social Development, 2010.
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.
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.
The earnings portion of non-qualified 529 withdrawals is subject to federal and state income taxes and a 10% federal penalty.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.