Get to know the Quest529 Education Savings Plan
How Our 529 Plan Works
No matter your child's age, the best time to open a Quest529 account is today. The sooner you start, the more time you have to take advantage of compound earnings and unique tax benefits.
Start early to make the most of your savings
Saving early has the potential to deliver compound earnings over a longer period of time.
529 fact
You don't have to save alone. Friends and family can gift contributions to help grow your savings using Ugift®.
Advantages of starting early
See how your savings might have grown if you start with $5,000 and continue to save $100 a month for 8, 12 and 18 years.
- Earnings
- Subsequent Contributions
- Initial Contribution
Save for 8 years
- Earnings:
- 6% Annual Return
- Subsequent Contributions:
- $100 per month
- Initial Contribution:
- $5,000 Lump Sum
- Total savings growth over time:
- $20,559
Save for 12 years
- Earnings:
- 6% Annual Return
- Subsequent Contributions:
- $100 per month
- Initial Contribution:
- $5,000 Lump Sum
- Total savings growth over time:
- $31,520
Save for 18 years
- Earnings:
- 6% Annual Return
- Subsequent Contributions:
- $100 per month
- Initial Contribution:
- $5,000 Lump Sum
- Total savings growth over time:
- $53,584
Graph Footnotes
- This chart assumes a $5,000 lump-sum investment, a $100 monthly investment and a 6% annual rate of return. The calculations are for illustrative purposes only, and the results are not indicative of the performance of any investments. The calculations do not reflect any plan fees or charges that may apply. If such fees or charges were taken into account, returns would have been lower. With any long-term investment, investment return may vary. Such automatic investment plans do not assure a profit or protect against losses in declining markets. Account value in the investment portfolios is not guaranteed and will fluctuate with market conditions.
How much should you save toward your child's tuition?
Get a quick estimate of approximately how much you'll need to save to meet your savings goals using our calculator tool.
Estimate your savings
Unique tax benefits
Quest529 offers compelling income tax benefits. And when you pay fewer taxes, you can potentially save more and grow your account faster—giving your child or grandchild an even bigger head start.
- Kansas taxpayers can reduce their state taxable income up to $6,000 if married filing jointly ($3,000 filing single) for contributions made into Quest529 per tax year per beneficiary. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply.1
- Earnings grow tax deferred.
- Investment earnings are 100% free from federal and Kansas state taxes when used for qualified education expenses.2
See the Quest529 Plan Description for more details on our unique tax benefits.
Who's Eligible?
You, your family, friends, neighbors and more—almost anyone over the age of 18 can open or contribute to Quest529.
Here are the details.
Account owners
- At least 18 years old with a valid Social Security Number (SSN) or Taxpayer Identification Number (TIN) and with a U.S. address
- Person opening the account is the account owner and can designate a successor account owner in the event of their death
- Certain trusts, estates and corporations can also open an account with a valid TIN*
Account Owner Footnote
- *Additional restrictions may apply; please refer to the Plan Description for details.↩
Beneficiaries
- The beneficiary is the future student and only needs a valid SSN or TIN and a U.S. address
- It can be your child, your grandchild, even yourself—but you don't need to be related to the beneficiary
- Only one beneficiary to an account, except when an entity creates a general scholarship account
Anyone can open an account (like a parent, grandparent or family friend) and transfer the account ownership to another eligible beneficiary or entity by submitting the appropriate plan form.
Qualifying expenses
With Quest529, you have full control over how to use your funds. Here is the wide variety of qualified education expenses that can support your child in any path they choose to take:
- Tuition at any eligible private or public college or university, community college, technical college, graduate school and professional school across the U.S. and many abroad
- Certain room and board (housing and food) related expenses
- Fees, books, supplies and other equipment needed for enrollment and attendance
- Computers and related technology such as internet access fees, software or printers
- Certain additional enrollment and attendance costs for beneficiaries with special needs
- Pay for K-12 qualified expenses at a public, private or religious elementary, middle or high school—up to $20,000 annually4
- Pay for apprenticeship expenses federal tax-free—apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act4
Funds can also be used in three other helpful ways:
- Repay student loans—up to a $10,000 lifetime limit per individual (including principal and interest on any qualified education loan)4
- Transfer additional or leftover funds to yourself or another eligible member of the family such as a brother or sister, up to the first cousin
- Quest529 funds may be rolled over to a Roth IRA in the name of the beneficiary. Funds rolled over to a Roth IRA can be withdrawn free from federal and Kansas income tax. There are conditions that must be met, including the 529 plan must have been in existence for at least 15 years. You should talk to a qualified professional about how tax provisions affect your circumstances.
Please see the state tax treatment of withdrawals section in the Plan Description for more information.
See Plan Description for additional information.
Have more questions?
No. Your Quest529 funds can be used at any eligible university in the country—and even some abroad. This includes public and private colleges and universities, registered apprenticeship programs, community colleges, graduate schools, professional schools or career technical education. Up to $20,000 annually can be used toward K-12 qualified expenses (per student). In addition, your 529 can be used for student loan repayment up a $10,000 lifetime limit per individual. Review a list of qualifying expenses and the state tax treatment of withdrawals for these expenses in the Plan Description1.
Footnotes
- 1Withdrawals for qualified expenses at K-12 public, private, or religious schools, registered apprenticeship programs, recognized postsecondary credentialing programs, and student loan repayment can be withdrawn free from federal and Kansas state income tax. State tax treatment for non-Kansas taxpayers varies. You should talk to a qualified professional about how tax provisions affect your circumstances.↩
If your child ends up not needing the funds for post-secondary education, you always have multiple options for your money:
- Your funds can be used to pay for a variety of eligible education expenses, including public or private colleges, universities, community colleges, professional and career technical programs, certain apprenticeship expenses or postgraduate programs in the United States—and even some schools abroad.1
- Your 529 can be used for student loan repayment up to a $10,000 lifetime limit per individual.1
- Up to $20,000 annually can be used toward K-12 qualified expenses (per student).1
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
- If you just want the money back, you can withdraw the funds at any time. If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the "Additional Tax"). See the Plan Description for more information and exceptions.
- Roll over funds to a Roth IRA. Limitations apply.2
- Pay for qualified expenses when enrolled in a recognized postsecondary credentialing program.1
- Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision. So, if your child changes their mind down the road, your savings will still be available.
Footnotes
- 1Withdrawals for qualified expenses at K-12 public, private, or religious schools, registered apprenticeship programs, recognized postsecondary credentialing programs, and student loan repayment can be withdrawn free from federal and Kansas state income tax. State tax treatment for non-Kansas taxpayers varies. You should talk to a qualified professional about how tax provisions affect your circumstances.↩
- 2Funds rolled over to a Roth IRA can be withdrawn free from federal and Kansas income tax. If you are not a Kansas taxpayer, these withdrawals may include recapture of tax deduction and state income tax. Account Owners and Beneficiaries should consult with a qualified tax professional before rolling over funds from their 529 plan to contribute to a Roth IRA.↩
Your Quest529 account can be used at eligible colleges, universities, vocational schools, community colleges, graduate or postgraduate programs, apprenticeships, credentialing programs and more.1 Contact your school to determine whether it qualifies as an eligible educational institution or use the Federal School Code Search tool on the Free Application for Federal Student Aid (FAFSA) website.
Footnotes
- 1Withdrawals for qualified expenses at K-12 public, private, or religious schools, registered apprenticeship programs, recognized postsecondary credentialing programs, and student loan repayment can be withdrawn free from federal and Kansas state income tax. State tax treatment for non-Kansas taxpayers varies. You should talk to a qualified professional about how tax provisions affect your circumstances.↩
There are no sales charges, startup fees or maintenance fees associated with Quest529 accounts. For details on total annual asset-based fees, comprised of the underlying investment expenses for each investment portfolio, plan management fee and state administrative fee, review the Plan Fee Table in the Plan Description.
