General InformationDownload PDF Report
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
- State agencyKansas State Treasurer
- Tax deductionTax deduction for single filers $3,000/yrTax deduction for joint filers $6,000/yr
- Program ManagerAmerican Century Investment Management, Inc.
- Program distributorCharles Schwab & Co. Inc.
- Manager contract termUNLOCK PRO
Ratings & Rankings
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.
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.
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
Maximum contributions:Accepts contributions until all account balances in Kansas' 529 plans for the same beneficiary reach $402,000.
Minimum contributions:No minimum.
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:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
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
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 expensesThe 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:UNLOCK PRO
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