Nebraska taxpayers are reminded that contributions to accounts in the Nebraska Educational Savings Trust (NEST 529) and the Enable Savings Plan must be made by December 31 to qualify for the 2018 tax year state income tax deduction, State Treasurer Don Stenberg said today.
Contributions to an account in either plan are deductible up to the maximum of $10,000 or $5,000 if married, filing separately. For the NEST 529 plans, only account owners can deduct their own contributions. For Enable, any contributor to an account can claim a tax deduction for his or her own contribution.
Contributions may be completed online or mailed. Electronic contributions must be completed by 10:59 p.m., CT, on December 31. Contributions sent through the mail must be postmarked no later than December 31.
“Be sure to remember to report your NEST and Enable account contributions on your Nebraska state income tax return,” said Stenberg, who is Trustee for both savings programs.
Launched in 2016, the Enable Savings Plan provides tax-free savings accounts to individuals with disabilities, allowing them to save without affecting their public benefits like Medicaid and Supplemental Security Income (SSI). It was one of the first national ABLE (Achieving a Better Life Experience) savings plans offered.
Stenberg said a contribution to a NEST 529 or an Enable account is a thoughtful and long-lasting gift that is easy to deliver. Information about making a gift to a relative or loved one’s Enable account is available online at https://www.enablesavings.com/home/basics/gift.html. Information about making a gift to a NEST 529 account is available at https://www.nest529direct.com/home/grow/friends--family-gifting.html. Both savings programs are managed by First National Bank of Omaha.
Stenberg offered the following advice about end-of-the-year contributions:
About NEST 529
NEST 529 is a tax-advantaged 529 college savings plan and provides four plans to help make saving for college simple and affordable: NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, the TD Ameritrade 529 College Savings Plan, and the State Farm College Savings Plan. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using Nebraska’s 529 College Savings Plans, which have more than 261,000 accounts, including over 84,000 in Nebraska. Visit NEST529.com and treasurer.nebraska.gov for more information.
Enable is a tax-advantaged savings plan to help make saving simple and affordable for individuals with disabilities. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and investments are approved by the Nebraska Investment Council. Visit EnableSavings.com and treasurer.nebraska.gov for more information.
About First National Bank of Omaha
First National Bank of Omaha is a subsidiary of First National of Nebraska. First National of Nebraska and its affiliates have more than $21 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.