Build Your Business
529 Plans Offer Opportunities to Gather Assets
As a college savings product, 529 plans provide unique solutions for tax and estate planning and overall wealth management. 529 plans are an excellent tool to build your business by generating qualified prospects from clients' families and friends.
Advantages of 529 plans include:
- Income tax benefits - Investments grow on a tax-deferred basis, and earnings are federal income tax free when used for education expenses.
- Gift tax benefits - Contributions are eligible for gift tax exclusion as long as certain conditions are met.
- Estate planning - Clients can remove contributions and future earnings from their taxable estate.
- No income limits - Any U.S. resident or citizen, regardless of income, can open an account.
- High contribution limits - Investments can be larger ($250,000 to $350,000 lifetime limit) compared with other education savings methods.
- Account owner maintains control - Clients can transfer the account to another beneficiary and determine specifics on withdrawals.
The availability of tax or other state benefits (such as financial aid, scholarship funds and protection from creditors) may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.
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 Advisor Handbook, available by contacting your financial advisor or American Century Investment Services, Inc., Distributor, at 1-800-345-6488, 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.
Administered by Kansas State Treasurer Jake LaTurner
Managed by American Century Investment Management, Inc.