#United States #Kansas #TIAA #Kansas 529 #Learning Quest

TIAA Selected to Manage Kansas' 529 Education Savings Plans

TIAA, the third largest and rapidly expanding provider of 529 plans across the United States, has announced its appointment by Kansas State Treasurer Steven Johnson to manage the state's 529 education savings program, encompassing an impressive $14.9 billion in assets. This choice marks a significant change aimed at revitalizing the program, which previously included the Learning Quest 529 Education Savings Program and the Schwab 529 Education Savings Plan. With this new management, it is anticipated that Kansas families will benefit from an astounding $38 million in annual savings.

A Commitment to Higher Savings

Kansas Treasurer Steven Johnson stated, “In making this change, we carefully considered the enhancements and savings we could deliver to provide greater value to families saving for education.” Indeed, the new program under TIAA is projected to be one of the lowest-cost and best offerings across the nation, allowing families to maximize their savings for educational purposes.
TIAA's management will not only benefit Kansas but will expand their education savings programs to a total of $85 billion in assets across 2.3 million accounts in ten states. This growth demonstrates TIAA's dedication to serving educational savings needs, ensuring that contributions from Kansas families work hard for their children's futures.

Significant Fee Reductions

One of the standout features of transitioning to TIAA is the dramatic fee reduction implemented for account holders. Under the new management, owners of the Learning Quest 529 plan will see a fee drop to an average total annual rate of 0.08% – the lowest recorded in the nation, representing a remarkable 78% reduction from the current structure. Similarly, the Schwab 529 Education Savings Plan will observe fees drop to 0.17%, totaling a 59% decrease.

Chris Lynch, President of TIAA-CREF Tuition Financing, emphasized the impact of these savings, stating, “For a typical Kansas family with $25,000 in their 529 account, these savings translate to hundreds of dollars in additional funds compounding over time. This money can be instrumental in covering educational costs such as textbooks or student housing.”

Long-standing Trust and Reliability

TIAA’s role in managing Kansas's 529 plans stems from its long history of serving various institutions and families in the state. They currently handle retirement plans for institutions such as the Kansas Board of Regents and Johnson County Community College, managing $13 billion in retirement assets for over 40,000 Kansans. As such, families in Kansas can feel assured that they are receiving a trustworthy and reliable service designed to support their financial goals.

The New Quest529 Brand

As part of this transition, the Learning Quest 529 Education Savings Program will undergo rebranding and will be known as Quest529. Along with the new identity, upgraded features will be introduced. Families can expect:

• - Enrollment Year Portfolios: Investments will be adjusted automatically based on when they intend to utilize the funds for educational goals.
• - Modernized Website: Enhanced navigation and planning tools to assist families better.
• - READYSAVE™ 529 App: Access to accounts anytime and anywhere.
• - Ugift®: A tool that allows family and friends to contribute directly to a child's education savings account.

The responsibility of management will fully transition by the close of business on February 27, 2026, with all services operational under the new branding by March 2, 2026.

Final Thoughts

As TIAA assumes the management of the Kansas 529 program, it remains committed to delivering outstanding results for families saving for education. The organization recognizes the importance of offering secure solutions that enhance the educational prospects for future generations. For additional details about the program updates, families can visit LearningQuestEnhancements.com and Schwab.com/529.

This significant overhaul and collaboration showcase TIAA’s ongoing promise to boost the financial health and educational opportunities of Kansas families, ensuring their contributions lead to substantial growth for future educational needs.