(TOPEKA, Kan.) - The dream of receiving a post-secondary education for low-income Kansans received a boost today. A law establishing a pilot program in which Kansas families with incomes not more than 200 percent of the federal poverty level can receive up to $600 in matching funds from the state for each dollar they contribute to a Learning Quest account, the Kansas 529 education savings account program.
"When families at this income level save even a modest amount for a student's future, it demonstrates to the students that continuing their education is both expected and planned for," Treasurer Jenkins said. "I can't think of a better way to provide hope for a child's future than to match their college savings with state funds."
Families that qualify for HealthWave will probably qualify for this program. The three-year pilot program is limited to 400 participants in fiscal year 2007; 800 in fiscal year 2008; and 1200 in fiscal year 2009. It was authored by Representative O'Malley from Roeland Park and endorsed by Kansas State Treasurer Lynn Jenkins, CPA, the administrator of the Kansas 529 program.
Families can open an account with a commitment to automatically invest $25 each month or a $500 lump sum contribution just as other investors do, but under the program, the state will match each dollar the participant contributes to their Learning Quest account up to $600.
The bill takes effect on July 1, 2006. To receive an enrollment application and other program materials as they become available, interested parties should call the State Treasurer's office at 785-296-3171 or e-mail LQ@treasurer.state.ks.us
Learning Quest, created by the State Legislature in 1999, has grown to more than $1 billion in assets and over 84,000 accounts. The program is administered by the Kansas State Treasurer's office and is professionally managed by American Century Investments.
Jenkins, a former State Representative and Senator from Topeka, was elected Treasurer on Nov. 5, 2002. She is a Certified Public Accountant and former small business owner. Since being sworn into office in January 2003, Jenkins has expanded investment options in Learning Quest, initiated multiple financial literacy programs, and eliminated the reliance on state general fund dollars to operate the office.
Before investing, carefully consider the plans investment objectives, risks, charges and expenses. This information and more about the plan can be found in the Learning Quest Handbook, available from American Century Investment Services, Inc., Distributor and Underwriter 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.
The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.
General information about Learning Quest is available by calling 1-800-579-2203 or by visiting learningquest.com. Investment advisors interested in Learning Quest Advisor should call 1-877-882-6236 or visit www.americancentury.com/ipro.
American Century Investments is a leading investment manager with nearly five decades of experience helping investors achieve their financial goals. For more information about the company, visit www.americancentury.com.
As with any investment, withdrawal value may be more or less than the original investment.
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 Investments.
