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What's the best way to save for education?

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When it comes to saving money for education, there are many options available—each with their own set of benefits. The best option for you depends on multiple factors, like your savings goals, risk tolerance and investment preferences.

The Quest529 Education Savings Plan may check all the right boxes

529 plans are one of the most popular ways families choose to save for education. Other common methods include Roth IRAs or a standard bank savings account.*

Quest529 Quest529 Logo

1
  • yes checkmark Can reduce your Kansas state taxable income up to $6,000 per beneficiary if married filing jointly 4
  • yes checkmark Tax-deferred growth
  • yes checkmark Tax-free withdrawals for qualified education expenses
  • yes checkmark Investment options
  • yes checkmark No income restrictions
  • yes checkmark No age restrictions for withdrawals
  • yes checkmark High annual contribution limits

Roth IRA2

  • no x No state tax deductions
  • yes checkmark Tax-deferred growth
  • potential question mark Tax-free withdrawals **
  • yes checkmark Investment options
  • no x Income restrictions
  • no x Age restrictions for withdrawals
  • no x Lower contribution limits

Bank Savings Account3

  • no x No state tax deductions
  • no x No tax-deferred growth
  • no x No tax-free withdrawals
  • no x No investment options
  • yes checkmark No income restrictions
  • yes checkmark No age restrictions for withdrawals
  • yes checkmark High annual contribution limits

Moreover, money saved in a 529 does not disqualify students for financial aid. 529 assets are typically treated as belonging to the parent (or grandparent, etc.) and count less in Student Aid Index (SAI) calculations than assets held in the child's name.

Learn more at https://studentaid.gov/ or check with the schools you are considering.

  1. *Read about material differences between Quest529, Roth IRAs and bank savings accounts. This material does not take into account any specific objectives or circumstances of any particular investor or suggest any specific course of action. Be sure to consult your legal or tax professional for tax advice.↩
  2. **No tax-free distributions for education expenses unless account owner is age 59 ½ or older and account has been established for five years.↩

Why choose Quest529

  • Quest529 offers a tax deduction to Kansas taxpayers—up to $6,000 for joint filers or $3,000 for single filers per beneficiary.4
  • With Quest529, any growth you see over time won't be subject to taxes down the line if used for qualified higher education expenses.
  • Quest529 savings do not disqualify students from financial aid and count less in SAI than assets held in the child's name.5

What's next?

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Have any questions about ways to save for education? We have answers.

Quest529 compares favorably to other ways to save. A 529 plan can mean more flexibility and growth potential, including:

  • Tax-free qualified withdrawals
  • Kansas state tax deduction
  • Low fees and expenses
  • Easy-to-choose investment options
  • Favorable financial aid treatment
  • Use for a wide range of education expenses and programs—in Kansas and around the world

Get more details and compare savings options.

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.

  1. 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.↩

When you contribute to a Quest529 account, any earnings are federal and Kansas income tax-deferred until withdrawn. Then withdrawals used to pay for qualified education expenses are federal and state income tax-free.

Yes, 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 beneficiary.1

  1. 1An individual who files an individual Kansas state income tax return may deduct up to $3,000 per beneficiary, per tax year ($6,000 for married taxpayers filing jointly) of total combined contributions to a Section 529 plan sponsored by any state, including the Kansas Section 529 Plans. The $3,000 (individual) and $6,000 (joint) limitations on deductions will apply to the total contributions made to all Section 529 plans (and any ABLE Account) for the same beneficiary without regard to whether the contributions are made to a single account or more than one account. The state income tax deduction is available to individuals other than the Account Owner who contribute to an Account. The deduction for Kansas individual income tax purposes for contributions to the Plan does not apply to transfers between Accounts of different Beneficiaries.↩
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