Kansas 529 Plan Rules And College Savings Options
Kansas has a 529 plan called Learning Quest that can help you save for college. Kansas also has a 529 Able Plan as well.
If you live in Kansas, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Kansas. Each state has different rules when it comes to 529 plan savings. Here are the Kansas 529 plan rules.
Average Cost Of College In Kansas
When saving for college in Kansas, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 82 colleges and universities in the State of Kansas.
The total average cost of college (Cost of Attendance) in Kansas for in-state residents is $15,213 for 2023. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $5,575 for 2023. The cost of tuition in Kansas has been relatively flat for the last few years.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Explore the data here.
Kansas 529 Plan Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in Kansas.
Contributions
Kansas offers a state tax deduction for contributions to any 529 plan nationwide of up to $3,000 for single filers and $6,000 for married filing jointly tax filers.
Matching Contribution: The Kansas Investments Developing Scholars (K.I.D.S.) Matching Grant Program is open for Kansas residents with incomes less than 200% of the federal poverty level. The State of Kansas will match the first $600 that Account Owners contribute to a Learning Quest Advisor account for each beneficiary eligible year of eligibility. Applications are limited to 1200 per year and are processed on a first-come first-served basis. Applications and contributions must be received by December 31 each year.
Minimum: There is no minimum contribution.
Maximum: Accepts contributions until all account balances for the same beneficiary reach $450,000.
Rollovers
Rollovers into the state plan are allowed, but not eligible for the tax deduction.
Outbound rollovers are allowed and NOT subject to tax deduction recapture.
Qualified Distributions
Qualified distributions from a Kansas and non-Kansas 529 plan are tax-free.
K-12 Education
Kansas does conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Student Loans
Kansas does conform with Federal law for using a 529 plan for student loans.
Rollover To Roth IRA
Kansas does allow the rollover to a Roth IRA up to $35,000. Learn more about the 529 plan to Roth IRA rollover here.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from a Kansas 529 is subject to recapture of prior tax deductions.
Kansas 529 College Savings Plan Options
Kansas has several 529 plan options - two consumer plans and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this).
Kansas Learning Quest Education Savings Program
The Kansas Learning Quest Education Savings Program is the name of Kansas' 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include American Century, Vanguard and Baird mutual funds.
Fees:
There is a program management fee of 0.20%.
The underlying funds all charge expense ratios from 0.18% to 0.54% depending on the investment option.
Who Should Use It:
We recommend that Kansas residents use the Learning Quest plan due to the tax benefits, low fees, and plan investment options.
We recommend that out-of-state residents utilize other plans.
Kansas Schwab 529 Plan
The Kansas Schwab 529 Plan is another of Kansas' 529 Plan. This plan is offered through Schwab. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include American Beacon, American Century, JP Morgan, and Schwab.
Fees:
There is a program management fee of 0.20%.
The underlying funds all charge expense ratios from 0.19% to 0.80% depending on the investment option.
Who Should Use It:
We recommend that Kansas residents use the Learning Quest plan due to the tax benefits, low fees, and plan investment options.
We recommend that out-of-state residents consider this plan.
Kansas 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
Kansas ABLE Savings Plan
The Kansas ABLE Savings Plan is a 529A plan open to all residents in Kansas.
This plan allows contributions of up to $18,000 per year from all sources.
It does have a minimum initial contribution amount of $25 per account. The minimum subsequent contribution amount is $25.
The plan does have an account maintenance fee of $60 annually, assessed at $15 per quarter. It also has a program management fee of 0.32%.
You can open an Kansas ABLE Savings Plan here.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
Kansas Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Kansas Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Clint Proctor Reviewed by: Chris Muller
