Save for school and on taxes
To pay for your family's education, you could use savings, income or loans — or a combination. While there are downsides to loans and using income, there are advantages to using savings.
The educational plan offered by our state, KY Saves 529, offers similar advantages to retirement savings accounts.
Benefits of KY Saves 529:
- Your savings grow quicker because they're tax-deferred
- You can withdraw your money tax-free for qualified educational expenses
- You have gift- and estate-tax advantages
- Your savings are not counted against state need-based student aid
Qualified educational expenses
- College, trade school and K-12 tuition
- College room and board
- College fees
- Computers for college
- Books for college
Save what you can. Every dollar you can save now can potentially be one less dollar you have to borrow and repay with interest later. It's not large contributions that are important, it's regular contributions.
Save automatically with KY Saves 529
You can fund your savings account directly from your UK paycheck, so you can set it and forget it. Making regular contributions makes a big difference, which is why we offer this direct funding option.
First, create your account on the KY Saves 529 website
KY Saves 529 website
Then easily assign your contributions in myUK
In myUK, go to Personal Information:
Then Personal Profile:
In the Bank Information section, choose Other bank then KY Saves 529 Plan (note: You must have a main bank set before you can set up contributions to a KY Saves 529 Plan):
The Account Type, Routing Number for KY Saves 529 Plans, and the 566 prefix for your account number is filled automatically. You will need to enter your 9-digit KY Saves account number in the Account Number field, along with the amount you'd like to contribute in the Standard value field. Please watch for extra space that could cause processing errors.
