Nebraska families who welcomed new additions in 2024 will receive a financial head start, thanks to the Meadowlark Savings Pledge. This spring, a one-time $50 seed contribution will be deposited into a state-managed NEST 529 account for every Nebraska child born in 2024, as directed by the Meadowlark Act.
Families will receive a letter from the State Treasurer announcing their qualification for the Meadowlark Savings Pledge, a program designed to help children and families start saving for higher education. The starter contribution has the potential to grow over time. Students can use the funds toward qualified expenses when it's time to continue their education after high school. In addition to Nebraska colleges and universities, funds can be used for technical, trade, and vocational schools.
Nebraska babies born on or after January 1, 2020 receive this one-time Meadowlark seed contribution. It is an automatic enrollment that does not require families to pay extra costs or complete any paperwork. Since its inception, more than 90,000 babies have received the Meadowlark seed contribution.
The Meadowlark Savings Pledge is a great way to start thinking about how to plan for the future – but it’s just the start. Opening a NEST 529 Education Savings account gives families the ability to make additional contributions toward higher education savings and offers tax benefits you won’t get with traditional savings methods.
Key features include:
Visit NEST529.com to learn more about the benefits of a NEST 529 Education Savings Plan. For more information on the Meadowlark Program, go to NEST529.com/Meadowlark.
The State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through the NEST 529 Plan, are vetted and approved by the Nebraska Investment Council.
###
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 more than 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 $8.7 billion and trust assets of $40.0 billion as of December 31, 2024. Voters have chosen Union Bank and Trust Company as Best Bank, Best Customer Service, Best Work Environment, and Best Financial Planner in Lincoln for thirteen 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 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.
2 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.
