The Kentucky education savings plan is a great way for families to save after-tax dollars for future college tuition costs. This outstanding 529 college savings plan is a state-sponsored program that has many benefits for its account holder. The KESPT program was created to make higher education affordable for Kentucky citizens. The cost of college expenses have been growing steadily in the past few years. Many analysts believe that college tuition costs will more than double in the next five years.
The Kentucky 529 college savings plan can help you get the head start that you need to save for your college expenses. There are also many other benefits that you can take advantage of when enrolling in the 529 college savings plan. These benefits can save you thousands of dollars and offer you the flexibility that you need to attain your financial goals.
Kentucky 529 college savings plan tax benefits
There are many different tax advantages that are associated with the Kentucky 529 college savings plan. Any earnings that grow in one of these plans grow federal and Kentucky income tax deferred. When you contribute to the KESPT, your account earnings grow tax-free which can make a major difference and how much money you contribute. Contributions made to the KESPT fund can reduce the taxable value of your state. Account owner’s can contribute up to $13,000 in a single year as a tax gift exemption. This one benefit can save you thousands of dollars in tax.
Cost of KESPT or Kentucky 529 College Savings Plans
The cost of the KESPT is minimal. There are no sales charges or start up costs involved with any of these programs. There are also no maintenance fees which can also be very beneficial. The only fees that are accompanied with these plans are administrative fees which normally range from .55% to .90%. There are no other hidden costs or adjustment fees that you have to worry about.
Managed by You and TFI
The Kentucky education 529 college savings plan has many flexible options that you can take advantage of. The state of Kentucky has chosen GFI to manage their financial services that are related to the 529 plan. GFI is one of the best financial organizations in the United States with over 90 years of investment experience. There customer service representatives can offer you many different options for your individual situation.
Investing in your child’s future can be complicated if you do not have a plan in place. TFI helps you build a portfolio that is right for you and your individual situation. If you are disciplined and make monthly contributions you are short to reach your financial goals. You are in charge of all the money that is invested including who the beneficiaries will be and when the money is withdrawn.