TOPEKA - Still trying to find that last special gift for your child, grandchild, niece or nephew? Why not start a new tradition of investing for a child's educational future, especially since Kansas taxpayers have until Dec. 31 to contribute to Kansas' Learning Quest 529 Education Savings Program for the 2007 tax year.
"Learning Quest investments make great gifts this time of year that will last long after the holidays are over, and anybody can contribute to a 529 account," said Kansas State Treasurer Lynn Jenkins, CPA.
Beginning this year, Kansas taxpayers may invest in Learning Quest or any other state-sponsored 529 Plan and receive a Kansas adjusted gross income deduction for their contributions. This deduction applies to contributions of up to $3,000 per student, per year ($6,000 if married, filing jointly). The state of Kansas is one of only four states in the nation to pass legislation that allows its taxpayers to receive a state deduction for their contributions to any state-sponsored 529 plan.
Some of the benefits of a 529 college savings plan, like Learning Quest, include:
- There is no age or income limits to contribute, open an account or be a beneficiary.
- The total contribution limit is currently $290,000 per beneficiary. This limit is based on the average expenses of five years of higher education and may be adjusted annually. The contribution limit is a combination of contributions and earnings.
- Earlier this year, enhancements took effect within the Kansas Learning Quest Education Savings Program. Most notably, the program features expanded investment options and lowered fees.
Kansas taxpayers only have until Dec. 31, 2007 to enroll or make additional investments in a Learning Quest Education Savings account and receive a reduction in 2007.
General information about Learning Quest is available by calling 1-877-345-8837 ext. 2181 or by visiting learningquest.com. Investment advisors interested in Learning Quest Advisor should call 1-877-882-6236 or visit www.americancentury.com/ipro.
Treasurer Lynn Jenkins, CPA is a former State Representative and Senator from Topeka and was elected as the 37th State Treasurer on Nov. 5, 2002. For more information about the Kansas 529 program or any of the programs offered by Treasurer Jenkins, please visit www.KansasStateTreasurer.com.
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.
Past performance is no guarantee of future results. As with any investment, withdrawal value may be more or less than the original investment.
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 your financial advisor or 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.
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.
