Savings / Prepaid Tuition Programs
Kentucky Education Savings Plan Trust
The Kentucky Education Savings Plan Trust (KESPT), Kentucky's 529 college savings plan, can help families save, in a planned way, for a child's higher education. A Trust account can be opened for a beneficiary of any age; and the method, schedule, and amount of contributions are determined by the account owner. Earnings are exempt from Kentucky taxes and any withdrawal used for qualified college expenses will be free of federal income taxes. Deposits can be as little as $25 (or $15 if made through payroll deduction), and the Trust offers competitive savings rates. The younger the child is when participation begins, the better prepared the family will be to meet growing educational costs.
KESPT has enhanced the program by adding three new investment options and lowered fees for most investment choices for the program. For more information on these exciting improvements and the over all program, call toll free 1-877-KY TRUST (1-877-598-7878), or visit www.kysaves.com.
Kentucky's Affordable Prepaid Tuition
Kentucky's Affordable Prepaid Tuition (KAPT) provides another approach for families who want to plan now for their children's future college expenses at a public, private, or out-of-state institution. Depending on which KAPT plan is purchased, the program guarantees to pay tuition at Kentucky's public colleges or universities or average tuition at Kentucky's private colleges and universities in exchange for early tuition purchased by lump sum or in monthly payments. Like KESPT, funds can be used at any accredited postsecondary school in the country, and withdrawals used for qualified higher education expenses are free from federal and state income taxes. Because no two families are exactly alike when it comes to their college savings needs, KHEAA recommends that parents carefully evaluate the advantages and differences between KESPT and KAPT. KAPT is currently closed to new enrollments.
For more information, visit www.getKAPT.com or call toll free (888) 919-KAPT.
