Frequently Asked Questions

The Kansas State Treasurer's Office has contracted with American Century Investments to serve as the program manager, providing you with a variety of investment choices to best meet your needs. Select from:

• Age-Based Tracks — Provide a convenient way to invest. You simply choose a Conservative, Moderate or Aggressive Track, or an Index Track, and Learning Quest does the rest. Investments are based on the age of your child. As your child gets older, you automatically move to a more conservative portfolio.
• Static Portfolios — Offer a fixed-allocation strategy, meaning the amount of stock, bond and money market funds in the portfolios is set and will not change unless you choose to do so. You decide how long you need or want to stay invested.

Learn More About Investment Options

Learning Quest is administered by Kansas State Treasurer Steven Johnson. The Treasurer develops rules and regulations to implement the program, selects the financial organizations to handle education savings accounts and ensures that all aspects of the program comply with federal, state and Internal Revenue Service guidelines.

A 529 Prepaid Plan generally allows families to purchase advance tuition credits or units to cover future attendance at a designated in-state public college or university. This is not an option in the Learning Quest 529 Education Investment Program.

The State of Kansas has selected American Century Investments as the program manager. This premier investment manager, brokerage and investment services company manages investor accounts, provides customer service, educates investors and communicates the benefits of the program. American Century Investments manages more than 80 mutual funds. It serves nearly two million individual and institutional investors.

All you need to open a Learning Quest account is the following information for yourself and the beneficiary:

• Date of Birth
• Social Security Number
• Mailing Address
• Investment Selections
• Bank Account Number and Routing Number

You can enroll online, by mail or through your financial advisor if you have one.

The account owner maintains control of the account, which includes making 529 withdrawals and any changes to the beneficiary or investment.

Learning Quest is available to all U.S. citizens and residents who want to invest for higher education. There are no age, state residency or income requirements. Trusts and other organizations including corporations, government entities, and not-for-profit organizations may invest in the program.

Anyone can make contributions to an existing Learning Quest account — not just the account owner. It's easy for grandparents or other family members and friends to help you invest for a child's college education.

Learn More About Who Can Contribute

Ugift^® is a free service from Learning Quest that lets family and friends give the gift of college savings.

• Account owners — Share the Ugift code and others can easily contribute to your 529 account whenever they want. Their contributions are specifically coded to your Learning Quest account, so you don't have any paperwork or anything extra to do.
• Gift givers — Make gift contributions online through electronic bank transfer or by check. Simply enter the Ugift code. You don't have to join, register or pay a fee.

It's a free rewards program that deposits a percentage of your spending to a Upromise^® account that can easily be synced to your Learning Quest account. Essentially, you're earning cash-back on your purchases and applying the funds to save for college.

Learn More About Upromise^®

*Upromise is an optional service offered by Upromise, Inc., is separate from Learning Quest, and is not affiliated with the State of Kansas. Specific terms and conditions apply. Participating companies, contribution levels and conditions subject to change without notice. Transfers subject to a $25 minimum.

No matter which state you live in, you can invest in a Learning Quest account. Your child does NOT need to attend college in your home state. Check with a tax advisor about your state's rules.

Learning Quest provides a payroll deduction option for companies that want to offer employees a college investment solution. Learn more about how Learning Quest can enhance your company's benefits package.

A new innovative gifting capability makes it easy to ask friends and family to give a gift to your Learning Quest account. You can create a Ugift crowdfunding goal page to help family and friends contribute. Personalize it with a picture and information about your goal. Once it’s set up, easily share it with friends and family through Facebook, Twitter and email. Anyone with a link to your goal page can make a gift contribution through electronic funds transfer.

Get started by logging into your account.

The difference between tax-free growth and taxable growth (in other investments) can be significant.

Assumptions: $2,500 initial investment with subsequent monthly investments of $100 for a period of 18 years; annual rate of return on investment of 5% and no refunds withdrawn during the time period specified; taxpayer is in the 30% federal income tax bracket for all options at the time of contributions and distribution. This hypothetical is for illustrative purposes only. It does not reflect an actual investment in any particular 529 plan or any taxes payable upon non-qualified distribution.

Having your earnings grow free of income taxes while in your 529 account means you are putting your money to work for you.

Earnings on non-qualified withdrawals are subject to federal and state income taxes and a 10% federal penalty tax.

Starting in 2024, 529 Plan Account Owners Will Be Able to Roll Over Unused 529 Funds to Roth IRA Accounts.

The SECURE 2.0 Act of 2022 permits an additional type of qualified distribution for 529 plan assets by allowing limited tax and penalty-free 529 plan rollovers to Roth IRA accounts beginning in 2024. This increased flexibility may help to address the needs of account owners whose beneficiaries have leftover funds in their 529 account. There are several key provisions of the Act as it relates to these rollovers, including:

• The 529 account must have been open for more than 15 years.
• The funds must be rolled over to a Roth IRA owned by the 529 account beneficiary and must be paid in a direct trustee to trustee transfer.
• The rollover amount cannot exceed the annual Roth IRA contribution limits.
• The eligible rollover amount (including earnings) must have been in the 529 account for at least 5 years.
• There is a $35,000 lifetime cap on Roth IRA rollovers for each 529 account beneficiary.
• Roth IRA income limitations are waived for 529-to-Roth IRA Rollovers, however, the annual amount rolled over to a Roth IRA for the beneficiary cannot exceed their “earned income” amount for the contribution year.

The 529 industry is continuing to examine and work through aspects of the SECURE 2.0 Act legislation, including clarifications and operational items, and additional information will be provided as it becomes available. In addition, whether a 529 rollover to a Roth is also a qualified distribution for state taxes will depend on each state.

Note to Kansas taxpayers: Effective January 1, 2024, 529 distributions to Roth IRAs will be considered a qualified expense for state income tax purposes.

To request a rollover to a Roth IRA, please download and complete the Direct Rollover Out to Roth IRA Form.

Please contact Learning Quest if you have questions specific to your account.

Federal law sets the standards for qualifying as an accredited post-secondary institution. An institution must offer credit toward an undergraduate or graduate degree, or other recognized post-secondary education credential and must be eligible to participate in federal student aid programs.

To determine if a school is qualified, contact the school's office of admissions about its accreditation status. You also can check on a school's eligibility to participate in federal financial aid programs (which is an indication the school is an eligible educational institution) on the Department of Education's website.

No. Your child can attend any accredited 2- or 4-year college, vocational or technical school, or graduate school anywhere in the United States.

It is not required that your student attend college immediately after graduating high school.

Set up a recurring (or automatic) contribution online, by phone, or in writing through an Account Features Form.

To set up recurring contributions online:

• Log in to your account with your user name and password.
• Click on the Contribute icon on the right-hand side.
• Select "Electronically from your bank account."
• Select the beneficiary's account(s) the contribution applies to.
• Enter the contribution amount.
• Select "Recurring."
• Choose the bank account or add a new bank.

Questions? Contact Learning Quest at (800) 579-2203, available weekdays from 8 a.m. to 5 p.m., Central time.

To set up an automatic tuition payment (to be paid on the same day each month), use the Account Features Form or do so online:

• Log in to your account with your user name and password.
• Select "View details" under the selected beneficiary.
• Select "Manage systematic withdrawals."
• Select "Set up a systematic withdrawal plan."
• Enter the frequency, start date, stop date and withdrawal day.
• Select "College or University."

To make an individual payment to a college, use the Withdrawal Form or do so online:

• Log in to your account with your user name and password.
• Select "View details" under the selected beneficiary.
• Select "Make a withdrawal."
• Select "College or University."

Questions? Contact Learning Quest at (800) 579-2203, available weekdays from 8 a.m. to 5 p.m., Central time.

Portfolio changes can be completed online, by phone, or in writing through an Investment Option Change/Future Allocation Form.

If you are requesting the change online:

• Log in to your account.
• Select "View details" under the selected beneficiary.
• Select "Change investment options."

You may change your portfolio selection twice during the calendar year without having to change the beneficiary, as permitted by the IRS.

Questions? Contact Learning Quest at (800) 579-2203, available weekdays from 8 a.m. to 5 p.m., Central Time.

Make a 529 withdrawal online, by phone, or in writing through a Withdrawal Request Form.

To make a 529 withdrawal online:

• Log in to your account with your user name and password.
• Select "View details" under the selected beneficiary.
• Select "Make a withdrawal."

Questions? Contact Learning Quest at (800) 579-2203, available weekdays from 8 a.m. to 5 p.m., Central Time.

Learning Quest will keep you informed about your investment's progress with quarterly account statements. You'll also receive a confirmation after each transaction, except for automated transactions. Each January, you'll receive an annual statement reflecting your account's entire history for the previous year.

Eligible 529 plan expenses include tuition, mandatory fees, books, computers, internet access, required supplies and equipment, and qualified room and board costs. Expenses for K-12 are limited to tuition.

The definition of qualified higher education expenses for 529 plans is expanded to include student loan repayment (principal or interest) on any qualified education loan of a designated beneficiary or a sibling of the designated beneficiary (i.e., those amounts would be withdrawn tax-free). The amount is treated as a qualified expense for loans of any individual and is subject to a lifetime limit of $10,000. A designated beneficiary and a sibling would each be allowed up to $10,000 of qualified education loan repayments as 529 plan qualified distributions.

Siblings may include a brother, sister, stepbrother or stepsister. A 529 plan account owner may change the 529 plan beneficiary at any time without tax consequences. The provision does not appear to directly encompass the repayment of student loan debt incurred by parents on behalf of the designated beneficiary.

Note: Distributions outlined under these provisions are considered qualified under Kansas state statutes. Per KSA 75-643(h) “Qualified higher education expenses” means any qualified higher education expense included in section 529 of the federal internal revenue code of 1986, as amended. Consult a tax advisor about how these changes may impact your personal situation.

Use Learning Quest's Financial Aid Calculator to estimate the amount of financial aid you may be eligible to receive. Using a savings vehicle that is treated as a parental asset, such as a 529 Plan, may help in the financial aid process.

The Free Application for Federal Student Aid is known as FAFSA. Here are answers to the 10 most common college aid questions and expert advice on completing and filing the FAFSA.