Kansas will open its 529 plan, Learning Quest, this Saturday. Learning Quest is being managed by American Century Investments of Kansas City. The program will offer three investment choices, the most that any similar plan in the country offers. Like Missouri's program, Learning Quest will be open to anyone, regardless of residency or where the beneficiary chooses to go to school. Account owners control all spending decisions and beneficiary designations.
Savers can open as many accounts for as many beneficiaries as they want.
Savers can open multiple accounts for the same beneficiary as long as total contributions don't exceed state limits. No federal income taxes are due on any earnings until money is withdrawn. There also is a penalty, usually 10 percent, if money is spent for anything other than education. Many states, including Missouri and Kansas, offer additional tax plums to savers who file state income tax returns there. Savers must give up virtually all control over how their money is invested once an account is opened.