KANSAS

Kansas Learning Quest Education Savings Program

Type: Savings

Phone: 800-579-2203

State tax deduction for residents: Deduction for contributions up to $2,000 per beneficiary per year ($4,000 if married filing jointly)

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $500 for residents, $2,500 for nonresidents / $235,000

Other: There is a one-year wait before you can make any withdrawals.

Here's a solid choice for state residents, who get a state-tax deduction for up to $2,000 in contributions per year per beneficiary (double that for married couples filing jointly). Managed by American Century Investment Management, expenses are reasonable, ranging from 0.86% to 1.34%, but flexbility is limited. Out-of-staters have better options because buying through a broker adds significant additional expenses. You have a choice of three age-based portfolios, called Target Year portfolios, a 100% equity portfolio or a 100% money market portfolio. The age-based portfolios have slightly outperformed their peers in the last year but three-year returns have lagged.

You also can invest through Charles Schwab, which offers four age-based portfolios and six blended fund portfolios. Fees range from 0.63% to 1.24%.

A minor limitation on Kansas residents: You must hold the account for one year before taking any qualified withdrawals.

State College Savings Plans