Learning Quest 529 Plan
Get the resources you need to manage your existing Learning Quest plan
Schwab no longer offers the Learning Quest® 529 Education Savings Program to new investors. However, we will continue to support existing Learning Quest accounts. Learning Quest clients can continue to make contributions, change investment portfolio selections (twice per calendar year as authorized by the IRS), take withdrawals, and change beneficiaries—as well as perform other account maintenance. Forms are available at schwab.com/forms by selecting the "Topics" Tab and then the "College and Custodial Accounts" option.
If you need assistance managing your Learning Quest account please call 888-903-3863.
Learning Quest® 529 Education Savings Program features:
- Tax-deferred earnings on your investments.
- Tax-free withdrawals when the money is used for qualified education expenses.
- No gift tax incurred for contributions up to $70,000 ($140,000 per couple) for each beneficiary in a single year.7
- State tax benefits for Kansas taxpayers, who may receive a maximum $3,000 ($6,000 per couple) annual state adjusted gross income deduction for contributions made to the program, per beneficiary.
- Contributions up to $365,000 per beneficiary.5 Contributions may be made to a 529 plan and an education savings account for the same beneficiary in the same year.
|Minimum for Automatic Investment Plan||$25 per month|
|Contribution deadline||December 314|
|Number of portfolios available||Age-Based Tracks: The age-based tracks are based on risk tolerance: aggressive, moderate, or conservative. Within each track, there are six portfolios based on the number of years until the student needs funds.
Static portfolios: Six diversified portfolios based on risk tolerance, and 2 single focus portfolios, the Money Market Portfolio and the 100% Equity portfolio.
|Underlying funds||American Century Investments and Vanguard funds|
|529 Plan Performance Reports||Learning Quest 529 Monthly Performance Report
Learning Quest Quarterly Performance Report
Learning Quest Annual Report
|Qualified||No penalty when used for beneficiary's qualified higher education expenses.|
||The earnings portion of withdrawals not used for qualified education expenses is taxed as ordinary income and may be subject to a 10% federal penalty tax.|
Fees and Expenses
|Annual account maintenance fees|
|Account maintenance fees||$0 fee|
|Fund Management Expenses|
|Portfolio fee||0.15% - 0.88%|
|For more information about the underlying fund and program management expenses, please review the Learning Quest Guide and Participation Agreement.|
Before investing, carefully consider the plan’s investment objectives, risks, charges and expenses. This information and more about the plans can be found in the Learning Quest Guide and Participation Agreement available from Charles Schwab & Co., Inc., 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. As with any investment, it is possible to lose money by investing in this plan.
Learning Quest accounts are serviced by Charles Schwab & Co., Inc. The Learning Quest 529 Education Savings Program is managed by American Century Investment Management, Inc. The plan was created by the Kansas State Legislature under the provisions of Section 529 of the Internal Revenue Code and is administered by Kansas State Treasurer Ron Estes. The state of Kansas offers two 529 Plans. The Learning Quest 529 Education Savings Program is available through American Century Investments. The Schwab 529 College Savings Plan is available through Charles Schwab & Co., Inc. there are different investment options available under each plan, as well as different investment advisors and fee structures.
Notice: Accounts established under Learning Quest and their earnings are neither insured nor guaranteed by the state of Kansas, the Kansas State Treasurer, American Century Investments or Charles Schwab & Co. Inc. Accounts established under Learning Quest are domiciled at American Century Investment and not Schwab.
1. The earnings portion of a non-qualified withdrawal is subject to federal and state income tax and a 10% penalty. State tax treatment may vary. Check with your tax advisor for rules on your state tax treatment.
4. To qualify for gift-tax exclusion, contribution must be received by December 31. If you are a Kansas taxpayer and wish to take a deduction for your contribution, it must be postmarked by December 31.
5. The limit is reached when the total value of all accounts for one beneficiary reaches $365,000 through a combination of contributions and account appreciation.
6. May be subject to a federal gift tax or a generation-skipping tax. Please refer to the Learning Quest Guide and Participation Agreement for more information.
7. To qualify for the special gift tax exclusion, you need to file a gift tax return to treat the gift as if it were made in equal payments over five years. To avoid gift tax, you should make no additional gifts to the beneficiary during those five years.
American Century Investment Services, Inc., Distributor and Underwriter.