"This is a great day for all Kansans who utilize the 529 education savings program to plan for their children's future education expenses," said Kansas State Treasurer Lynn Jenkins, CPA. "Now Kansans can invest freely in their plan and not have to worry about paying federal income taxes on earnings they withdraw for qualified expenses."

By removing the 2010 deadline, investments can continue to grow tax-deferred and withdrawls for any qualified higher education expenses will be income tax-free. Qualified higher education expenses include tuition, fees, books, supplies and equipment required for attendance at an accredited institution of higher education. They also include room and board expenses for students attending at least half-time.

Learning Quest, the Kansas 529 Education Savings Program, was established in 1999 and has grown to more than $1.3 billion in assets and over 90,000 accounts. The plan offers a Kansas state adjusted gross income deduction of up to $3,000 per child ($6,000 if married, filing jointly) to residents investing in Learning Quest. This state income tax deduction will be extended to all Kansas taxpayers who invest in any state sponsored 529 education savings program, beginning Jan. 1, 2007. The state income tax deduction was not affected by the legislation passed by the US Congress.

"The passage of this legislation will maintain one of the key federal tax benefits of the 529 education savings program nationally as well as in Kansas," Jenkins said. "We hope this encourages more Kansans to invest in their children's future education by opening a Learning Quest or other 529 account."

Learning Quest is administered by the Kansas State Treasurer's office and is professionally managed by American Century Investments.

Treasurer Jenkins and American Century were early champions of making permanent the tax-free withdrawal benefit of 529 plans, banding together to encourage public support. In 2004, American Century surveyed Americans on the issue and found that nearly three-quarters favored the permanency provision.

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.