Funds can be added electronically
LEXINGTON, Ky. (Dec. 13, 2016) — A college savings plan could be a perfect holiday gift for someone on your list. Kentucky’s official 529 college savings plan is the Kentucky Education Savings Plan Trust (KESPT).
KESPT is an investment account with tax advantages designed to help families save and pay for college. The plan also offers a simple eGifting feature.
“The gift of a college education doesn’t fit in a box, but it truly is the gift that never stops giving,” said David Lawhorn, KESPT program manager. “Families who start saving early will be better prepared for the future and their children are more likely to graduate without the burden of student loan debt.”
Not only can earnings grow tax free in a KESPT account, but withdrawals are also tax-free when used to pay for qualified education expenses.
According to the Current Population Survey by the U.S. Bureau of Labor Statistics, a person with a bachelor’s degree earns a median income that is 68 percent higher than someone with a high school diploma. Over a 40-year career, the difference in earning potential can be more than $950,000. The difference is more significant for those who earn master’s, professional and doctoral degrees.
A KESPT account can be started with as little as $25 and can be used at any qualified institution in the nation. For more information about KESPT, tax advantages and the eGifting feature, visit kysaves.com or call toll-free 1-877-598-7878.