The Nebraska State Treasurer wants to remind families seeking holiday gift ideas to consider giving a financial contribution to a loved one’s NEST 529 Education Savings Plan. A gift of any amount to an education savings account has the potential to grow into a bigger gift in the future.
“A holiday gift doesn’t need to be a toy or something to wear,” said Nebraska State Treasurer Tom Briese. “Giving the gift of education is a long-term investment toward a loved one’s future that will help ease financial burdens that can add up with higher education.”
How to Gift
Account owners can invite friends and family members to contribute to a NEST 529 account. To get started, visit NEST529.com/Friends-Family-Gifting. When a contribution has been made, the gift-giver can print a NEST 529 holiday card for the recipient.
Tax Benefits
As 2023 comes to an end, accounts owners are encouraged to consider the tax advantages of
end-of-year contributions to their NEST 529 account. Nebraska account owners are eligible to receive a Nebraska state income tax deduction of up to $10,000 ($5,000 if married, filing separately) for contributions made to their own NEST accounts.1
“It’s easy to see the many benefits of a NEST 529 account for a loved one’s educational future, and yearly tax benefits from contributions can be helpful just like the rewards seen when the funds are withdrawn,” said Briese.
Because the last day of the year falls on a Sunday, financial contributions eligible for 2023 tax benefits must be mailed and postmarked by December 30, 2023. Account owners can also contribute online by logging into their account at NEST529.com.
Visit NEST529.com/tax-benefits to read more about the benefits of a NEST 529 Education Savings Plan.
The Nebraska State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through the NEST 529 program, are vetted and approved by the Nebraska Investment Council.
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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, NEST Advisor College Savings Plan, Bloomwell 529 Education Savings Plan, and State Farm 529 Savings Plan. The Nebraska State Treasurer serves as Program Trustee. Union Bank and Trust Company 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 close to 300,000 accounts. Visit NEST529.com and treasurer.nebraska.gov for more information.
About Union Bank and Trust Company
Founded in 1917 with over 50 years of family ownership, Union Bank and Trust Company offers complete banking, lending, investment, and trust services. The bank has 38 full-service and loan production offices in Nebraska and Kansas. It is the third largest privately owned bank in Nebraska, with bank assets of $7.6 billion and trust assets of $43.6 billion as of December 31, 2022. Voters have chosen Union Bank and Trust Company as Best Bank, Best Customer Service, Best Work Environment, and Best Financial Planner in Lincoln for twelve years running.
Important Legal Information
An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing. This and other important information is contained in the fund prospectuses and the NEST Direct College Savings Plan Program Disclosure Statement (issuer’s official statement), which should be read carefully before investing. You can lose money by investing in an Investment Option. Each of the Investment Options involves investment risks, which are described in the Program Disclosure Statement.
An investor should consider, before investing, whether the investor’s or beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. Investors should consult their tax advisor, attorney, and/or other advisor regarding their specific legal, investment, or tax situation.
The NEST Direct College Savings Plan (the “Plan”) is sponsored by the State of Nebraska, administered by the Nebraska State Treasurer, and the Nebraska Investment Council provides investment oversight. Union Bank and Trust Company serves as Program Manager for the Plan. The Plan offers a series of Investment Options within the Nebraska Educational Savings Plan Trust (the “Trust”), which offers other Investment Options not affiliated with the Plan. The Plan is intended to operate as a qualified tuition program.
Except for any investments made by a Plan participant in the Bank Savings Static Investment Option up to the limit provided by Federal Deposit Insurance Corporation (“FDIC”) insurance, neither the principal contributed to an account, nor earnings thereon, are guaranteed or insured by the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, the Trust, the Plan, any other state, any agency or instrumentality thereof, Union Bank and Trust Company, the FDIC, or any other entity. Investment returns are not guaranteed. Account owners in the Plan assume all investment risk, including the potential loss of principal.
1Account owners may deduct for Nebraska income tax purposes contributions they make to their own account (and any other accounts they own in the Nebraska Educational Savings Plan Trust) up to an overall maximum of $10,000 ($5,000 if married, filing separately). Contributions in excess of $10,000 cannot be carried over to a future year. For a minor-owned or UGMA/UTMA 529 account, the minor is considered the account owner for Nebraska state income tax deduction purposes. The minor must file a Nebraska tax return for the year their contributions are made to be eligible for a tax deduction for their own contributions. In the case of a UGMA/UTMA 529 account, contributions by the parent/ guardian listed as the Custodian on the UGMA/UTMA Plan account are also eligible for a Nebraska state tax deduction.
