Attending a college University can be a great way for a young adult to get the education they need to be successful. The Kansas 529 college savings plan was created to help parents and loved ones save money for college tuition. The learning quest 529 education savings program has many different benefits that can be used to maximize the amount of money that is saved. This exciting new program has helped thousands of parents save money for their children’s higher education. Here is a list of some of the many benefits that will be at your disposal if you open up one of these outstanding investment accounts.
Kansas 529 College Savings Plans Tax Benefits
There are many tax benefits that exist with the Kansas 529 college savings plan. These benefits can help you save thousands of dollars which you can use to invest in your portfolio. Kansas taxpayers receive an annual adjusted gross income deduction of up to $3000 per year. If you are married and file jointly, you can deduct up to $6000 per year, per beneficiary. This means that if you have to children you can have deductions that add up to almost $12,000 per year. This huge tax advantage can help you add some needed funds into your child’s college savings plan.
Any earnings that grow in one of these accounts grow tax-deferred. They are tax-deferred from federal state taxes as well as Kansas State taxes. The earnings portion of any withdrawals used to pay for education expenses are deducted tax-free. Make sure that you check the qualifications before making any of these withdrawals. Gift tax exemptions are also great benefits. You can contribute up to $13,000 per beneficiary without being subject to a gift tax. This can be a great way for grandparents and other relatives to make contributions to their loved ones account and take advantage of the tax benefits.
Kansas 529 College Savings Account Investment Options
As you enroll in one of these 529 plans you will quickly find out that you have a lot of options at your disposal. There are many different ways to invest in a 529 college savings plan. There age-based tracks that can help you get a customized portfolio based on your child’s current age. This can be the easiest way to make monthly contributions which will help you reach your financial goals. Making consistent monthly investments will help you achieve the results that you are looking for.
Fees and Expenses with Kansas College Saving Program
There are no enrollment fees for individual investors or other account holders. In most cases the underlying fund expenses average to be about .05%. There are no sales charges involved with the transactions. The Vanguard group was chosen by the state of Kansas to manage the Learning Quest 529 education savings program. Vanguard offers account holders excellent customer support and can help each individual create a customized plan that is right for their situation.
The Kansas 529 college savings plan is a great way for parents to get ahead and start saving money now for college tuition. These outstanding programs can help parents in many ways. Saving money for your child’s college tuition can be the greatest investment you make in your lifetime.