To support the educational aspirations of Nebraska’s youth, Governor Jim Pillen has proclaimed September as College Savings Month in the state. Through this proclamation, parents and guardians are reminded of the value of saving and the importance of financial preparedness to secure a brighter future for their children through post-secondary education.
The State of Nebraska recognizes the challenges and ever-increasing costs that individuals face when supporting their loved ones’ future educational needs. By acknowledging September as College Savings Month, Governor Pillen encourages more families to capitalize on tax-advantaged savings programs like NEST 529, ensuring that higher education remains accessible and achievable so children can soar toward their dreams.
"As families face the rising costs of higher education, it's more important than ever to take advantage of the tools available to plan for the future. NEST 529 offers parents, grandparents, and guardians a tax-advantaged way to invest in their children's education and help turn their academic dreams into reality," said Nebraska State Treasurer Tom Briese. "College Savings Month serves as a vital reminder that every contribution, no matter how small, can make a significant impact over time."
This College Savings Month, parents and guardians should take the opportunity to discuss how a 529 education savings plan can help their loved ones reach their goals.
Higher education costs continue to rise above the rate of inflation1 and extend beyond just tuition and board to include books, laptops, institution fees, and more. Scholarships and grants can only help cover some of those expenses. According to College Board, a nonprofit organization that helps students navigate the path to secondary education, in 2023-24, the average yearly costs2 of higher education tuition and fees for a full-time student are as follows:
The NEST 529 Education Savings Plans offer a tax-advantaged way to save for a wide range of higher education expenses, including costs at four-year universities, trade school, technical programs, two-year community colleges, and qualified apprenticeship programs. With no minimum deposit required to open an account and contributions that can be managed online, NEST 529 makes it easy to start saving at any time. Account owners in Nebraska may be eligible for an annual state income tax deduction of up to $10,000 for NEST 529 contributions or $5,000 if married filing separately3. Plus, any earnings grow tax free, and qualified withdrawals may be free from federal and state income taxes4, providing even greater savings potential.
For parents and guardians who would like to learn about the benefits of a NEST 529 Education Savings Plan in person, NEST 529 is inviting you to an educational forum free of charge at the following locations to learn more about the tax advantaged plans:
The hour-long forum includes a presentation about what a 529 account is, ways to open one, and important considerations for contributing to a loved one’s future. Parents, family members and legal guardians as well as financial advisors, human resource and other professionals are invited.
A question-and-answer session will follow the presentation, and light refreshments and door prizes will be provided. To learn more about the forums or sign up to attend, visit NEST529.com/forum.
While the future may be uncertain, taking small steps to save can significantly impact a child’s success. A NEST 529 account allows families to start investing in their children’s future so they can soar toward their goals. Visit NEST529.com to read more about the benefits of the NEST 529 Education Savings Plans.
The Nebraska State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through 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 education 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 Education 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 $8.4 billion and trust assets of $48.1 billion as of December 31, 2023. 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 can be obtained at NEST529.com and 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 Underlying Investment 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.
1 Source: Best Colleges "529 College Savings Plans Statistics" (January 2023).
2 Source: The College Board "Trends in College Pricing" (November 2023). Average Published Tuition and Fees in 2023 Dollars by Sector (2023-24)
3 Account 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.
4 Withdrawals used to pay for qualified higher education expenses are free from federal and Nebraska state income tax. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance; certain room and board expenses incurred by students who are enrolled at least half-time; the purchase of computer or peripheral equipment, computer software, or Internet access and related services, if used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution; certain expenses for special needs services needed by a special needs beneficiary; apprenticeship program expenses; and payment of principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary (up to an aggregate lifetime limit of $10,000 per individual). However, earnings on all other types of withdrawals are generally subject to federal and Nebraska state income taxes, and an additional 10% federal tax.
Nebraska law does not treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses: K–12 Tuition Expenses. If a withdrawal is made for such purposes, although it is a Federal Qualified Withdrawal, it will be treated as a Nebraska Non-Qualified Withdrawal and may result in the recapture of a previously claimed Nebraska state income tax deduction, and the earnings portion will be subject to Nebraska state income tax. Please consult your tax professional about your particular situation.
