Nebraska Celebrates 25th Anniversary of College Savings Program

Nebraska’s state-sponsored college savings program is celebrating 25 years of helping children achieve their educational and career dreams.

 Launched in early 2001, the Nebraska Educational Savings Trust (NEST 529) now has approximately 306,000 accounts and nearly $8 billion in assets. According to State Treasurer Joey Spellerberg, whose office oversees the NEST 529 program, nearly 108,000 Nebraskans have a NEST 529 account — an increase of 14,000 compared to five years ago.

 “Saving for kids’ college expenses is a challenge,” Treasurer Spellerberg said. “For a quarter of a century, NEST 529 has provided a powerful, tax-advantaged resource that empowers parents and grandparents to invest in their children’s futures.

 “Nebraska has one of the nation’s highest participation rates for state-sponsored educational savings programs, and our 529 program continues to earn a Medalist Rating from Morningstar. Nebraskans can take pride in the thousands of success stories produced over the last 25 years — from first-generation college students to professionals in the skilled trades.”

 NEST 529 offers an income tax deduction of up to $10,000 a year ($5,000 if married, filing separately) for contributions made by account owners. Accounts grow tax-deferred, and when used for qualified education expenses, withdrawals are free from federal and Nebraska income taxes. Funds can be used at accredited universities, graduate schools, community colleges, trade and vocational schools, and registered apprenticeships.

 Treasurer Spellerberg noted that NEST 529 offers four distinct plans, each tailored to different saver preferences and providing a range of investment options. The plans feature low expenses and no annual account fees.

 “The 25th anniversary of NEST 529 is a significant milestone and solidifies our mission of enhancing Nebraska’s college savings plans as the leading choice for families to invest in a child’s future,” said Deputy State Treasurer for Savings Programs Rachel Biar. “We are proud of our efforts to help children reach their full potential through the use of affordable and flexible 529 education savings plans.”

 Visit NEST529.com to learn more about the benefits of a NEST 529 College Savings Plan.

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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 over 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 billion as of Dec. 31, 2024. Voters have chosen Union Bank and Trust Company as Best Bank, Best Work Environment, and Best Financial Planner in Lincoln for 14 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. Union Bank and Trust Company is registered as a municipal advisor with the U.S. Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB). 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 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.