By Trish Svoboda

On April 4, Steven Johnson, the State Treasurer of Kansas, praised the approval and enactment of Senate Bill 360. This bill brings enhancements to the tax-favored savings schemes overseen by the State Treasurer’s Office.

Johnson expressed enthusiasm about the new opportunity for Kansans. They can now make state-tax-deductible contributions to their Learning Quest 529 accounts, ABLE savings accounts, and First-Time Home Buyer savings accounts up until the tax filing deadline. Furthermore, they can choose to have these contributions count towards the previous year. This change aligns the contribution deadlines of these accounts with those of other tax-advantaged accounts, such as IRAs. As a result, Kansas taxpayers can plan for and make additional contributions to these accounts while preparing their tax returns in the spring, instead of having to make those contributions by December 31.

Because the bill contained a provision making the deadline change retroactive to the 2023 tax year, Kansans who wish to make additional 2023 contributions to these accounts by April 15 may now do so. Consult with a financial advisor or tax preparer for additional information.