Kansas Learning Quest Savings
Created by the Kansas Legislature, the program offers a tax-deferred way to invest for a child's education and provides benefits for both Kansas residents and non-residents.
This program, sometimes called a 529 Plan, provides tax incentives to those contributing to education accounts and offers important advantages over other college investing methods. Contributions can be made beginning on July 1, 2000.
Who can open an account?
- Parents, grandparents, siblings, - anyone can open an account. In addition, anyone can be named the beneficiary of your account, even yourself.
- The only requirement is a two-year wait following the account opening before qualified withdrawals can be made.
- Up to $2,000 deduction from Kansas adjusted gross income per student, per year.
- No state or federal income taxes on the growth of assets in the account until they are withdrawn.
- No income limits for those opening an account.
- High contributions limits, with total contributions for each student limited only by the average expenses of five years of higher education in Midwestern states (set at $ 127,000 for 2000); no limit on the total account value.
- Withdrawals for qualified education expenses taxed at the student's rate (earning portion only, since contributions are after-tax).
Understanding how these tax credits will benefit you requires specific knowledge about your individual tax circumstance. Anyone seeking to take advantage of these tax credits should seek qualified counsel in order to determine how they might benefit from these tax credits.