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Schwab 529 College Savings Plan

The Kansas Schwab 529 College Savings Plan is available through discount broker Charles Schwab and managed by American Century. The Plan utilizes a variety of mutual fund families in its age-based and static portfolio options. Accounts can be linked to the Upromise rewards service.


  • Program typeSavings
  • Inception2003
  • State agency
    Kansas State Treasurer
  • Tax deduction
    Tax deduction for single filers $3,000/yr
    Tax deduction for joint filers $6,000/yr
  • Program Manager
    American Century Investment Management, Inc.
  • Program distributor
    Charles Schwab & Co. Inc.
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for KS residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Our overall rating for non-residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.


2.84out of 5
top-ten

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, and UGMA/UTMA custodians. Joint ownership is permitted.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Kansas' 529 plans for the same beneficiary reach $380,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $25. With the automatic investment plan, the minimum contribution level is $25 per month.

Investment Options

Age-based investment options:

An Index Age-Based option and a Static Age-Based option are offered in 4 different risk levels (Aggressive, Moderately Aggressive, Moderate, and Moderately Conservative) each containing 8 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and the age of the beneficiary or the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.View more age-based investment options

Static investment options:

Select among 13 options: 6 multi-fund portfolios with varying degrees of risk tolerance, 6 index portfolios, and a money market fund portfolio.View more static investment options

Underlying investments:

Schwab, Laudus, American Century, American Beacon, Baird, J.P. Morgan, Metropolitan West Asset Management, and Vanguard mutual funds.View a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.20% manager fee

Expenses of the underlying investments:

Ranges from 0.20% - 0.80% (portfolio weighted average).

Total asset-based expense ratio:

0.40% - 1.00%; Index portfolios have all-inclusive fee of 0.25%.

Taxes and other Benefits

  • Tax deduction for single filers$3,000/yr
  • Tax deduction for joint filers$6,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to Kansas AND non-Kansas state-sponsored 529 plans of up to $3,000 per beneficiary per year by an individual, and up to $6,000 per beneficiary per year by a married couple filing jointly, are deductible in computing Kansas taxable income. Rollover contributions are not deductible. Contribution deadline is December 31.

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan are included in Kansas taxable income to the extent of prior Kansas tax deductions. Rollovers are not subject to recapture.

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

State tax treatment of qualified distributions:

Qualified distributions from Kansas and non-Kansas 529 plans are exempt.

State tax treatment of rollovers:

Kansas follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college..

Statutory protection of an account from creditors:

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Want to Boost your Savings?

You could be saving more with gifts from family and friends. CollegeBacker makes it easy to start a 529 plan, and then invite others to contribute for birthday parties, holidays, or even on a monthly basis.

Start saving with family and friends

Alternative 529 Plans

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NextGen 529 -- Client Direct Series

The Maine NextGen 529 -- Client Direct Series is available through Merrill Edge. The plan utilizes BlackRock (including iShares) funds in its age-based and static options. In addition, the Principal Plus Portfolio and the NextGen Savings Portfolio are available.

Our rating for residents
Our rating for non-residents
Fees - 0.53%
Performance
1-YR
3-YR
5-YR
10-YR
9.69%
7.82%
9.61%
6.92%

Why we like this plan

  • Strong long-term performance
  • Low fees
  • Matching Grants for qualifying accounts
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T. Rowe Price College Savings Plan

T. Rowe Price College Savings Plan, the nationally-branded version of Alaska's direct-sold 529 savings program mirrors the University of Alaska College Savings Plan but lacks the ACT Portfolio found in the UA program. The enrollment-based and static portfolios available in this program utilize T. Rowe Price mutual funds.

Our rating for residents
Our rating for non-residents
Fees - 0.7%
Performance
1-YR
3-YR
5-YR
10-YR
12.2%
9.5%
-
-

Why we like this plan

  • Strong long-term performance
  • Protection from creditors
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145,912 clicked to enroll
New York's 529 College Savings Program -- Direct Plan

New York's direct-sold 529 college savings plan is available to residents of any state. It offers low fees and diverse investment options featuring Vanguard mutual funds. New York residents may enjoy a state tax deduction for contributions to the plan.

Our rating for residents
Our rating for non-residents
Fees - 0.13%
Performance
1-YR
3-YR
5-YR
10-YR
-
-
-
-

Why we like this plan

  • Strong long-term performance
  • Low fees
  • Large tax deduction on contributions for residents

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

http://www.schwab.com/529

Telephone:

1-866-903-3863

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