Lower fees are in the works for nearly all Kentuckians who have a 529 education savings account with the Kentucky Education Savings Plan Trust.
At its Dec. 13 meeting, the board of the Kentucky Higher Education Assistance Authority (KHEAA), which administers the trust, chose Ascensus as the new manager for the plan. Ascensus is the nation’s largest manager of 529 savings programs, which take their name from the section of the federal tax code that deals with such plans. Ascensus will assume management of the trust in February 2019.
“We are pleased that Kentuckians who are saving for education will have this opportunity to see more of their savings go toward school expenses and less toward fees,” said Finance and Administration Cabinet Secretary William M. Landrum III. “Kentucky needs a workforce with the training and education that will help our economy grow and attract new businesses.”
Funds invested with the trust can be used to pay both for training and education after high school, but also for tuition for elementary and secondary schools.
“Ascensus has a proven track record of designing 529 programs that deliver exceptional value and drive positive savings outcomes for their participants,” said KHEAA Executive Director Eugene P. Hutchins. “We’re thrilled to partner with an industry leader to form a new and improved Kentucky Education Savings Plan Trust that will make investing for education more accessible and affordable for Kentucky residents.”
“We’re honored to have been selected to manage the Kentucky Education Savings Plan Trust and look forward to partnering with the state to offer families the support they need to achieve their education savings goals,” said Kevin Cox, head of government savings at Ascensus.
Ascensus currently services over 4.3 million 529 accounts and is uniquely positioned to help Kentucky enhance its KESPT program, Cox added.
The new program will offer participants increased flexibility, choice and value. Ascensus will work closely with KHEAA to create a lower cost investment lineup that will include options from several of the nation’s leading fund companies.
Ascensus will provide all program and investment management services for the plan, including customer service and online account management. Ascensus will also market the plan and will hire a local representative who will engage Kentucky community groups and employers at a grassroots level.
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About the Kentucky Education Savings Plan Trust
KESPT is the Commonwealth’s official 529 education savings plan, which helps parents, grandparents, family and friends save for a loved one’s education with tax advantages. It is administered by the Kentucky Higher Education Assistance Authority (KHEAA). Visit kysaves.com for more information about the Plan or call toll free 877-598-7878.
About Ascensus
Ascensus is the largest independent recordkeeping services provider, third-party administrator, and government savings facilitator in the United States. The firm delivers technology and expertise to help millions of people save for what matters most — retirement, education, and healthcare. For more information about Ascensus, visit ascensus.com.