As New Federal Child Savings Accounts Launch, Education Savings Still Deserves Its Own Strategy

Published June 16, 2026

TOPEKA, KS (June 16, 2026) – New federally supported child investment accounts expected to launch this summer are generating fresh conversation about how families save for their children's futures.

As families explore new ways to invest for the next generation, Kansas State Treasurer Steven Johnson encourages parents and grandparents to remember that education remains one of the most significant investments many families will make—and today's education pathways extend far beyond a traditional four-year university.

Today's students have more options than ever before. Whether a child chooses a four-year university, community college, trade school, apprenticeship, certification program, or workforce training credential, Quest529 can help Kansas families save for qualified education expenses.

Unlike general-purpose investment accounts, Quest529 was specifically designed for education savings. The program offers tax advantages, flexible investment options, and one of the lowest fee structures in the nation, helping families prepare for a wide range of educational pathways.

"Many people still think of 529 plans as college savings accounts, but today's students are pursuing many different routes to career success," said Johnson. "Quest529 gives Kansas families a flexible way to save for education, whether that means a university degree, technical training, or an industry certification."

Additional benefits of Quest529:

• Eligible unused funds may be rolled into a Roth IRA for the beneficiary, subject to federal requirements and limits.
• Kansas taxpayers qualify for state income tax deductions on contributions.
• Earnings grow tax-deferred and qualified withdrawals are tax-free.
• An online gifting tool that lets relatives contribute directly.
• Portfolios that automatically adjust the investment approach as a child ages.

As families consider new ways to invest in their children's futures, starting early remains one of the most effective strategies. Even modest monthly contributions can help families prepare for future education expenses, potentially reducing the need for student borrowing.

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About Quest529

Quest529 is one of the Kansas 529 postsecondary education savings programs, administered by the Kansas State Treasurer, Steven Johnson. With average total annual asset-based fees at 0.08%, Quest529 is among the most affordable 529 plans in the nation.¹ Kansas taxpayers can reduce their state taxable income up to $6,000 if married filing jointly ($3,000 filing single) for contributions made into Quest529 per beneficiary. Learn more at Quest529.com.

To learn more about Kansas' Quest529 Education Savings Plan, its investment objectives, risks, charges and expenses see the Plan Description at Quest529.com before investing. Read it carefully. Prior to investing, check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. If the funds aren’t used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for Quest529.

Funds rolled over to a Roth IRA can be withdrawn free from federal and Kansas income tax. If you are not a Kansas taxpayer, these withdrawals may include recapture of tax deduction and state income tax. Account Owners and Beneficiaries should consult with a qualified tax professional before rolling over funds from their 529 plan to contribute to a Roth IRA.

An individual who files an individual Kansas state income tax return may deduct up to $3,000 per beneficiary, per tax year ($6,000 for married taxpayers filing jointly) of total combined contributions to a Section 529 plan sponsored by any state, including the Kansas Section 529 Plans. The $3,000 (individual) and $6,000 (joint) limitations on deductions will apply to the total contributions made to all Section 529 plans (and any ABLE Account) for the same beneficiary without regard to whether the contributions are made to a single account or more than one account. The state income tax deduction is available to individuals other than the Account Owner who contribute to an Account. The deduction for Kansas individual income tax purposes for contributions to the Plan does not apply to transfers between Accounts of different Beneficiaries.

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Media Contact:

Tom Mentzer
Mentzer PR Group (for Quest529)
tmentzer@mprg.biz
913-626-9066