Who Can Open a College Savings Account?

The Learning Quest 529 Education Savings Program is available to investors in all states — not just Kansas residents. Almost anyone can open an account. The more people on board supporting a child's future, the more prepared that child will be to attend college. What better gift is there to give than the gift of higher education?

You have come to the right place to start saving now for your child's future. Make college a reality and help your child achieve their dreams! The key to a college savings plan is to start early and invest as often as possible, allowing your money to work for you with the power of compounding. There are other benefits to opening a 529 college savings account, including:

  • Easy to Use — Your child can use the funds at any accredited 2-or 4-year college, vocational or technical school, or graduate school anywhere in the United States. Your child does NOT need to attend college in your home state. You can use your 529 plan to pay for tuition, mandatory fees, computers, books, supplies, equipment, and qualifying room and board costs.
  • Tax Advantages — Your earnings grow tax-deferred and qualified 529 withdrawals are tax-free. It's the smart way to save! Other tax benefits:
    • State income tax deduction: Check with your state for specific tax benefits. Many states offer a tax benefit even when investing in a plan from another state. For example, Kansas taxpayers receive an annual adjusted gross income deduction of up to $3,000 (or $6,000 if you're married and filing jointly) for contributions per child.
    • Federal gift tax incentive: You can contribute up to $14,000 per year ($28,000 if you're married and filing jointly) without incurring federal gift taxes.
    • Estate Planning & Accelerated Gifting — Reduce your personal taxable estate through accelerated gifting (learn more about accelerated gifting). This means you can make five years' worth of gifts up to $70,000 (or $140,000 if you're married and filing jointly) to your 529 account in a single year without being subject to gift taxes. This benefit is unique to 529 plans.
  • Generous Contribution Limits The current contribution limit is $370,000, a number calculated based on the average expense of five years of higher education. This contribution limit is a combination of contributions and earnings and may be adjusted annually.
  • Retain Control — You determine when and where the account's assets are used. If your child does not go to college, you can change the beneficiary to another eligible family member.
  • Easy to Manage — Log in and manage your account at any time on our secure web site. Get answers to your questions through our service line (800) 579-2203 or web site "Resources" tab, which includes forms, FAQs and other helpful materials. You also have the option of working with a financial advisor to manage your account and investment options.

Or, check out Ugift® and Upromise® — ways to give to an already established 529 account.

You create a lasting legacy when you help your grandchildren attend college. Simply open a Learning Quest account with your grandchild as the beneficiary. You can start accounts for each of your grandchildren, no matter their ages. It's an impactful way to show you believe in their future... wherever their dreams take them!

There are multiple benefits to opening a 529 account, including:

  • Easy to Use — Your grandchild can use the funds at any accredited 2-or 4-year college, vocational or technical school, or graduate school anywhere in the United States. Your grandchild does NOT need to attend a college in their home state. The funds in the 529 plan can pay for tuition, mandatory fees, computers, books, supplies, equipment, and qualifying room and board costs.
  • Tax Advantages — Your earnings grow tax-deferred and qualified withdrawals are tax-free. It's the smart way to save! Other tax benefits:
    • State income tax deduction: Check with your state for specific tax benefits. Many states offer a tax benefit even when investing in a plan from another state. For example, Kansas taxpayers receive an annual adjusted gross income deduction of up to $3,000 (or $6,000 if you're married and filing jointly) for contributions per child.
    • Federal gift tax incentive: You can contribute up to $14,000 per year ($28,000 if you're married and filing jointly) without incurring federal gift taxes.
    • Estate Planning & Accelerated Gifting — Reduce your personal taxable estate through accelerated gifting (learn more about accelerated gifting). This means you can make five years' worth of gifts up to $70,000 (or $140,000 if you're married and filing jointly) to your 529 account in a single year without being subject to gift taxes. This benefit is unique to 529 plans.
  • Generous Contribution Limits — You can contribute up to $370,000 per grandchild.
  • Retain Control — You determine when and where the account's assets are used.
  • Easy to Manage — Log in and manage your account at any time on our secure web site. Get answers to your questions through our service line (800) 579-2203 or web site "Resources" tab, which includes forms, FAQs and other helpful materials. You also have the option of working with a financial advisor to manage your account and investment options.

Or, check out Ugift® and Upromise® — ways to give to an already established 529 account.

Is there a special niece, nephew, godchild or a friend's child you would like to help? Invest in their college education. It's one of the most impactful gifts any child can receive as it opens the door to unlimited opportunities.

You can open a Learning Quest account even if the parents or grandparents already have one for the same child, as long as the total contributions for that child do not exceed $370,000.

Here's what you need to know about opening an account:

  • Name the child as the account's beneficiary. All you need is the child's name, date of birth and Social Security number or Tax ID number.
  • Contribute as little or as much as you like in a one-time or recurring contribution.
  • Retain control as the account owner. You can determine when and where the account's assets are used.
  • Receive tax advantages. Your earnings grow tax-deferred and qualified withdrawals are tax-free. It's the smart way to save! Check with your state for specific tax benefits. For example, Kansas taxpayers receive an annual adjusted gross income deduction of up to $3,000 (or $6,000 if you're married and filing jointly) for contributions per beneficiary. Other gift tax incentives are also available.

Or, check out Ugift® and Upromise® — ways to give to an already established 529 account.

Invest in YOU

Are you considering going back to school to earn a degree, receive additional certifications or training, or brush-up on your career skills? A Learning Quest account isn't just for kids. It offers a tax-advantaged method to invest in your own future. Make your dreams a reality! Here's what you need to know:

  • Open a Learning Quest account with YOU as the beneficiary, no matter your age.
  • Attend any accredited 2- or 4-year college, technical or vocational school or graduate school.
  • Use your college savings account for any qualified expense, including tuition, mandatory fees, books, supplies and equipment.
  • Receive tax advantages. Your earnings grow tax-deferred and qualified withdrawals are tax-free. It’s the smart way to save! Check with your state for specific tax benefits. For example, Kansas taxpayers receive an annual adjusted gross income deduction of up to $3,000 (or $6,000 if you’re married and filing jointly) for contributions per beneficiary.

As an employer, it's important to offer a competitive suite of benefits, and keep adminstrative costs and HR/payroll department efforts to a minimum. With the Learning Quest 529 Education Savings Program, everyone can benefit. Your employees get to invest in higher education for themselves or their family members, while you get to boost your benefits package at no cost.

Learning Quest can be an easy way for your employees to start investing for higher education. They can sign up for payroll deduction online and with one form, you can begin to process their contributions. The minimum contribution is $25 per month. Since the service works through the popular Automated Clearing House (ACH) system, chances are your payroll/benefits department already has the necessary procedures in place.

Payroll direct deposit is the no-cost benefit!

You benefit from:

  • No added costs
  • No extra work
  • Easy implementation
  • Perfect complement to tuition reimbursement

Your employees benefit from:

  • Automatic savings
  • Potential tax breaks and benefits
  • Low initial investment
  • Smart saving options

Schedule a Consultation Online

Or, contact Teresa Stewart, 529 Business Development Consultant, at (816) 340-2502.

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.

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 a tax advisor regarding your specific situation.