Nebraska State Treasurer John Murante, First National Bank of Omaha and TD Ameritrade today announced updates to the TD Ameritrade 529 College Savings Plan, effective November 18. The TD Ameritrade Plan is one of four nationally available 529 plans offered by the Nebraska Educational Savings Plan Trust and administered by Treasurer Murante.
Updates to the TD Ameritrade 529 College Savings Plan will reduce the total estimated annual asset-based fees for the Age-Based and Static Options between five to eleven basis points, and changes will be made to reduce the cost of three Individual Investment Options. In addition, along with its core traditional investing options, the plan will begin to offer socially aware options – also known as an Environmental, Social and Governance or ESG offerings.
“Across all four of our plans, the Nebraska Educational Savings Plan Trust is committed to offering high performing and competitively priced investment options,” said Nebraska State Treasurer John Murante. “These fee cuts and socially-aware Investment Options are a strong addition to our 529 plan offerings, in line with our mission to best serve the needs of all Account Owners and their families in their college savings journey.”
“We are proud to be one of the first 529 plans in the country to strengthen the TD Ameritrade Plan to meet the growing demand for socially conscious investing options,” said Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha. “First National Bank of Omaha worked closely with TD Ameritrade to ensure that the ESG options match our high investment standards, empowering Account Owners to realize their dreams for college as well as their personal values.”
The redesigned plan will leverage expertise from portfolio consultant TD Ameritrade Investment Management, LLC (TDAIM) for the Socially-Aware Age-Based and Static Investment Options and will be offered through both direct-to-consumer and registered investment advisor (RIA) TD Ameritrade channels.
The investment structure will remain focused on Age-Based, Static and Individual Investment Options and all funds used in them will be nonproprietary, with no annual maintenance fees and no account minimums. In addition, Age-Based and Static Investment Options will now only consist of passive investments.
“At TD Ameritrade, we are pleased to offer investors ESG options as part of the updated TD Ameritrade 529 college savings plan,” said Dara Luber, senior manager of Retirement at TD Ameritrade. “This will be a welcome improvement for those in the thick of investing and saving college funds for their children who are seeking strategies to better align with both their investing objectives and their values. There is growing demand to invest in companies with stronger ESG practices, particularly among the younger generations.”
More information is available at tdameritrade.com/account-types/education/529-plans.page and treasurer.nebraska.gov.
The TD Ameritrade 529 College Savings Plan (the "Plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The Plan offers a series of investment portfolios within the Nebraska Educational Savings Plan Trust (the "Trust"), which offers other investment portfolios not affiliated with the Plan. Nebraska Educational Savings Plan Trust serves as Issuer. The Plan is intended to operate as a qualified tuition program to be used only to save for qualified higher education expenses, pursuant to Section 529 of the U.S. Internal Revenue Code.
An investor should consider the Plan’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at https://www.tdameritrade.com/account-types/education/529-plans.page, which contains more information, should be read carefully before investing.
Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarships funds, and protection from creditors that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation.
Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.
Investments in the TD Ameritrade 529 College Savings Plan are not guaranteed or insured by the FDIC or any other government agency, and are not deposits or other obligations of any depository institution. Investments are not guaranteed or insured by the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha, TD Ameritrade, TD Ameritrade Investment Management, LLC or their authorized agents or their affiliates, and are subject to investment risks, including loss of the principal amount invested.
The Nebraska Educational Savings Plan Trust serves as Issuer. The Nebraska State Treasurer serves as Trustee and First National Bank of Omaha serves as Program Manager, First National Capital Markets, Inc. serves as Distributor, Member FINRA, SIPC. TD Ameritrade, Inc. serves as sub-administrator. TD Ameritrade Investment Management, LLC serves as Portfolio Consultant. First National Capital Markets and First National Bank of Omaha are affiliates.
TD Ameritrade, Inc. renders certain marketing and administrative services to the TD Ameritrade 529 College Savings Plan. TD Ameritrade Investment Management, LLC renders portfolio consulting services to First National Bank of Omaha and the Nebraska Investment Council.
TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and the Toronto-Dominion Bank. All rights reserved. Used with Permission.
Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value
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 $23 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.