Kentucky Education Savings Plan Trust

Our Plan

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Children are our most precious assets, and you want to give them the best. But when it comes to the dream of higher education, the reality of rising tuition can make that dream look out of reach. It doesn't have to be that way.

The Kentucky Education Savings Plan Trust (KESPT) is the 529-college savings plan for Kentucky. This state-sponsored education savings program was created specifically for the purpose of helping Kentucky families save after-tax dollars for future college expenses.

Administered by the Kentucky Higher Education Assistance Authority (KHEAA), KESPT gives you a way to start saving today to prepare for a child's tomorrow.


Any Earnings Can Grow Federal and Kentucky Income Tax-deferred
When you contribute to KESPT, any earnings in your account have the opportunity to grow federal and Kentucky income tax-deferred until withdrawn.


Contributions and Earnings Used to Pay for Qualified Higher Education Expenses Are Federal and Kentucky Income Tax Free
The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and Kentucky income tax. This federal income tax-free treatment of qualified withdrawals and other federal tax benefits are permanently in place for 529 plans through the passage of the Pension Protection Act of 2006.


Federal Estate and Gift Tax Benefits
Contributions to KESPT may reduce the taxable value of your estate. Contributions to KESPT, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $12,000 per donor, per beneficiary for 2008. If an account owner's contribution to a KESPT account for a beneficiary in a single year exceeds $12,000, the account owner may elect to treat up to $60,000 of the contributions, or $120,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion.

Read more about KESPT's features:

Investment Options

Learn why it's so important to start now.


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Not Sure Where to Begin?
  1. Use the calculators to see how much college will cost and how much you need to save.
  2. Read the FAQ and the KESPT Disclosure Booklet and Participation Agreements (PDF, 519KB), or call us toll-free at
    1-877-KY TRUST (1-877-598-7878)..
  3. Open an Account today.

Don't forget you can set up an  Automatic Contribution Plan (PDF, 157KB) or use Payroll Deduction (PDF, 45KB) for your contributions (if offered by your employer).

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The tax information contained on the Kentucky Education Savings Plan Trust (the Plan) Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The Plan is administered by the Kentucky Higher Education Assistance Authority. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager. TFI's affiliate, TIAA-CREF Individual & Institutional Services, LLC, is the distributor.

The investment approaches described are not recommendations and do not take into consideration personal goals or preferences. After evaluating information you consider important in making an investment choice, the ultimate decision is up to you. It is a good idea to revisit your investment strategy periodically as your goals, personal financial situation, and market conditions change.

Consider the investment objectives, risks, charges and expenses before investing in the Plan. Please call toll-free 1-877-KY TRUST (1-877-598-7878) for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Kentucky, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general market conditions.

The Plan Web site is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet.

The Plan Web site contains links to other Web sites. Neither the Plan Trust nor TFI and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

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© 2008 TIAA-CREF Tuition Financing Inc.