How 529 plans could be an important tool as tuition costs skyrocket.
Your child has big dreams and a bright future. Steep tuition shouldn’t stand in the way of them. Investing early with a plan that fits your family’s needs could potentially help your child achieve their dreams despite the ever-increasing cost of college.
Thankfully, a 529 account is a flexible and tax-advantaged tool parents can leverage when investing in higher education. One of these options is the Learning Quest 529 Education Savings Program, Administered by the Kansas State Treasurer, Steven Johnson.
With a Learning Quest 529 plan, parents have the opportunity to invest flexibly in the way that’s best for their family. Here are the plan’s features and benefits every parent should know, regardless of how far away their child’s college years may seem.
Future Flexibility
As they grow up, your child’s big dreams are bound to change shape. Learning Quest 529 plans were designed for that –– with flexibility every step of the way. When the time comes to put your 529 funds to use, there are lots of options for the where, when, and what for, making it easier for your child to chase (and change) their dreams.
529 funds can be used at any accredited higher education institution across the United States, no matter what state your child grew up in. In addition to a traditional 4-year institution, funds can also be used at graduate school, technical or vocational school, or 2-year colleges. They can also be put toward tuition at any K-12 school.
As for the “what,” qualified expenses go beyond just tuition, including books, school supplies, computers, software and internet access, qualifying room and board costs, and more.
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.
Learn more about 529 plan flexibility.
Tax advantages today.
Aside from feeling more prepared for the future, parents can get more tangible short-term benefits, like tax advantages, when they invest with a Learning Quest 529 plan. With tax-deferred growth, contributions grow free of federal and state income taxes. This has the potential to make a significant difference when compared with a taxable account receiving the same contribution amount and frequency.
Additionally, 529 account owners can deduct contributions from their taxable income, potentially lowering their yearly tax burden. And when the time comes to begin putting your 529 funds toward qualified educational expenses, you won’t have to pay income taxes on the growth of your account.*
*The earnings portion of non-qualified withdrawals is subject to federal and state income taxes and a 10% federal penalty.
Learn more about 529 tax advantages.
Easy management, always.
From opening an account to withdrawing funds, and everything in between, managing your 529 account is simple and straightforward. Opening an account with Learning Quest takes seconds, and whether you manage it through our online portal or on paper is up to you. Plus, Learning Quest’s customer service line is always happy to answer questions should you hit a snag.
Discover more about Learning Quest 529 plans.
Before investing, carefully consider the plan’s investment objectives, risks, charges and expenses. This information and more about the plan can be found in the Learning Quest Handbook, available by contacting American Century Investment Services, Inc., Distributor, at 1-800-579-2203, and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary’s home state offers a 529 plan that provides its taxpayers with state tax and other benefits not available through this plan.
Notice: Accounts established under Learning Quest and their earnings are neither insured nor guaranteed by the state of Kansas, the Kansas State Treasurer or American Century.
As with any investment, withdrawal value may be more or less than your original investment.
This information is for educational purposes only and is not intended as tax advice.
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.
Administered by the Kansas State Treasurer, Steven Johnson.
Managed by American Century Investment Management, Inc.
©2025 American Century Proprietary Holdings, Inc. All rights reserved.
This article is sponsored by the Kansas Learning Quest 529 Education Savings Program.
