News & Press Releases
Give the Gift of a College Education with Kentucky’s 529 Plan
FRANKFORT, Ky.—With the hustle and bustle of the holidays in full swing, Kentucky families are encouraged to include college savings on their gift lists. Electronic gifting features and tax advantages offered by 529 plans make now the perfect time to start or add to college savings accounts.
Kentucky’s official 529 college savings plan is the Kentucky Education Savings Plan Trust (KESPT). KESPT is an investment account with tax advantages designed to help families save and pay for college. The plan also offers a simple eGifting feature that allows parents to invite family and friends to make secure contributions with just a few clicks at www.kysaves.com.
“The gift of a college education doesn’t fit in a box, but it truly is the gift that never stops giving,” said David Lawhorn, KESPT program manager. “Families who start saving early will be better prepared for the future and their children are more likely to graduate without the burden of student loan debt.”
There are tax advantages associated with 529 plans, too, so year-end is a good time for families to review their savings strategies. Not only can earnings grow tax free in a KESPT account, but withdrawals are also tax-free when used to pay for qualified education expenses.
College remains a wise investment. According to the U.S. Bureau of Labor Statistics (Current Population Survey, 2015), a person with a bachelor’s degree earns a median income that is 68 percent higher than someone with a high school diploma. Over a 40-year career, the difference in earning potential can be more than $950,000. The difference is more significant for those who earn master’s, professional and doctoral degrees.
A KESPT account can be started with as little as $25 and can be used at any qualified institution in the nation. For more information about KESPT, tax advantages and the eGifting feature, visit kysaves.com or call toll-free 1-877-598-7878.
Consider the investment objectives, risks, charges and expenses before investing in the Kentucky Education Savings Plan Trust. Please visit kysaves.com for a Plan Disclosure Booklet containing this and other information. Read it carefully. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances. Non-qualified withdrawals may be subject to federal and state taxes and the additional 10% federal tax.
TIAA-CREF Tuition Financing, Inc., Plan Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Kentucky Education Savings Plan Trust.
No public funding is used for KESPT marketing, promotions or contest awards. Funding for marketing is provided by the program manager, TIAA-CREF Tuition Financing, Inc.