Kentucky 529 Plan

Kentucky offers two 529 college savings plan, both a traditional, direct plan called Kentucky Education Savings Plan Trust (KESPT); and a pre-paid tuition plan called Kentucky's Affordable Prepaid Tuition.

Kentucky Education Savings Plan Trust (KESPT)

KESPT is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct - this Kentucky 529 plan can be purchased directly.

Fund Family: TIAA-Cref

Minimums: To get started you can deposit $25. If you should choose to deduct automatically from your paycheck, you can open an account with a $15 deposit.  Minimum subsequent contributions follow as above - $25 and $15 with payroll deduction.

Maximum Contributions:  Currently, you can contribute up to $235,000 to your Kentucky 529 plan.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more

Tax Benefits:  Good news for Kentucky residents - Every dollar contributed to the plan can be deducted from your taxable income. You also get the same benefit for federal income taxes.  Out-of-state participants still get the federal tax benefits.

Residency: KESPT is open to all United States residents, not just those in Kentucky.

You can learn more about the this 529 plan at the official web site.

Kentucky's Affordable Prepaid Tuition

Kentucky also offers a pre-paid tuition plan that lets you lock in today's rates for college.   It can be used at any qualified institution of higher education, public or private, anywhere in the country.  However, private and out-of-state college expenses will be prorated and may not be fully covered.

For more information about Kentucky's Affordable Prepaid Tuition visit the official website http://www.getkapt.com/.