Kentucky does not currently offer any special tax benefits to taxpayers who contribute to a 529 plan.
What is the Kentucky 529 plan?
KY Saves 529 helps you save for the rising costs of education.
What are the qualifications?
- College, trade school, and K-12 tuition1
- Room and board
- Computers and laptops
- Even things like tools, if required by the program
What are the limits?
Contributions qualify for the current federal $16,000 annual gift exclusion.
What if I don’t use it for education expenses?
Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes.