 | Kentucky's 529 Plans
KAPT and KESPT Overview |  |
Kentucky provides two ways to help families save for college: the Kentucky Education Savings Plan Trust (KESPT) and Kentucky's Affordable Prepaid Tuition (KAPT). Kentuckians can participate in either or both.
The information below gives a general overview of similarities and differences in the programs. KAPT and KESPT should be considered complimentary because together they can help families cover the full range of higher education expenses. Families should review each program carefully before participating in either or both.
KAPT guarantees the cost of tomorrow's tuition at today's lower prices. Families can choose from three tuition plans and a variety of payment options. Payment amounts are based on the plan selected. KAPT is administered by KHEAA. For more information, call (888) 919-KAPT or visit www.getKAPT.com. KAPT is currently closed for new enrollment. This situation is evaluated yearly.
KESPT helps families save for tuition, fees, room, board, books, supplies, and equipment. KESPT offers a choice of investment options. Payments can be as low as $15 if made through payroll deduction. Investments are managed by TFI, a subsidiary of TIAA-CREF, with oversight by KHEAA. For more information, call (877) 598-7878 or visit www.kysaves.com.
| Federal Tax Exemption on Earnings | Yes | Yes |
| State Tax Exemption on Earnings | Yes | Yes |
| State Tax Deduction on Contributions | No | No |
| Investment Guarantee | Yes | No |
| Investment Options | No | Yes |
| Use of Benefits at Public, Private, and Out-of-State Institutions | Yes | Yes |
| Exclusion from State Student Aid Eligibility Calculation | Yes | Yes |
| Beneficiary Age Restrictions | No | No |
| Contribution Limits | Depends on Plan | $235,000 |
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