Kansas State Treasurer
TOPEKA—September is College Savings Month, and for many Kansas families, that also means sitting with questions that don’t have easy answers yet: Will my child go to a four-year college or university? A trade program? Something else entirely? The good news is a 529 plan doesn’t require having the answers today.
A 529 plan is a tax-advantaged account designed to help families save for education. But despite the name “college savings plan,” those savings aren't limited to a traditional four-year college.
Quest529, Kansas' state-sponsored 529 plan, can help pay for a wide range of education paths, including two- and four-year colleges, trade and vocational schools, registered apprenticeships and eligible credentialing programs.
That flexibility holds true even if a child’s path leads out of state because funds can be used at eligible schools and programs across the country.
The savings can cover more than tuition, too. Qualified expenses can include things like books, supplies, room and board, and other education-related expenses. Funds can also be used for certain K-12 education expenses and student loan repayment, subject to applicable limits.
If a child ultimately doesn't need all of the money for education, families may have other options. Under current federal law, up to $35,000 in unused 529 funds may be eligible to roll over to the beneficiary's Roth IRA, subject to federal requirements and limits.
“Parents shouldn’t feel like they have to predict their child’s future before they start saving for it,” said Kansas State Treasurer Steven Johnson, administrator of Quest529. “Whether that future includes a four-year college, a skilled trade, an apprenticeship or another path, Quest529 gives families the flexibility to start preparing today.”
Flexibility extends to how a family saves, too. Family and friends can contribute directly to an account through Quest529’s online gifting tool, Ugift, making it easy to turn birthdays, holidays or other occasions into contributions toward a child’s education.
Kansas families can visit Quest529.com to learn more about qualified expenses or to open an account online in minutes.