Nebraska State Treasurer Encourages Families to Give the Gift of Education This Holiday Season

This holiday season, Nebraska State Treasurer Joey Spellerberg is encouraging families to look beyond traditional gifts and consider giving something that can make a difference for a lifetime.

By contributing to a loved one’s NEST 529 Education Savings Plan account, parents, grandparents, other family members, and friends can help children prepare for future education expenses while making the most of the holiday giving season.

"The holidays are about showing the people we love how much they mean to us," Spellerberg said. "A contribution to a child’s education savings is a meaningful way to do that. It’s more than a gift for today – it’s an investment in their future and the opportunities ahead of them."

How to Give the Gift of Education

Giving to a NEST 529 account is simple. Family members and friends can contribute to an existing account, making it easy for loved ones to help a child reach their dreams.

Don’t have an account yet? The holiday season is the perfect time to start saving. Nebraska has one of the nation’s highest participation rates for state-sponsored educational savings programs, and the NEST 529 program continues to earn a Medalist Rating from Morningstar.

To learn how to contribute, visit NEST529.com/Friends-Family-Gifting. Once a contribution has been made, the gift-giver can order or print a NEST 529 holiday gift card to share with the recipient.

Take Advantage of Year-End Tax Benefits

Beyond holiday gifting, the end of the year presents an important opportunity for account owners to take advantage of potential state income tax benefits.

Eligible Nebraska account owners can deduct up to $10,000 in contributions to their own NEST 529 accounts from their Nebraska taxable income ($5,000 if married, filing separately).¹ To qualify for 2026 tax benefits, contributions must meet the Dec. 31, 2026, deadline.

"Whether you're making a gift to a loved one or adding to your own child’s education savings, every contribution is a step toward helping them prepare for what’s next," Spellerberg said. "With the end of the year approaching, now is a great time for Nebraska families to consider how a NEST 529 account can support their savings goals."

To open an account, contribute, or learn more about NEST 529’s tax benefits, visit NEST529.com.

About NEST 529 Plans

A NEST 529 Plan is a tax-advantaged savings account for higher education expenses. Tax-advantaged savings include a Nebraska state tax deduction, tax-deferred growth, and tax-free qualified withdrawals.² Account owners in Nebraska are eligible for an annual state income tax deduction of up to $10,000 for NEST 529 Plan account contributions or $5,000 if married filing separately.¹ NEST 529 College Savings Plans can be used for everything from four-year universities to two-year technical schools.

Opening a NEST 529 Plan account doesn’t require a minimum deposit to get started, and contributions can be managed online. NEST 529 Plans give families the ability to start investing in their loved one’s future, so they can soar to their goals and become who they want to be as adults.

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.

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About the State Treasurer’s Office: The Nebraska State Treasurer serves as the state’s chief financial officer and is responsible for the safekeeping and management of Nebraska’s public funds. The office administers the Nebraska Educational Savings Trust (NEST 529) and the Enable Savings Plan; manages and returns unclaimed property; collects and disburses child support payments; and promotes transparency in state spending. Learn more at treasurer.nebraska.gov, or follow us on Facebook, LinkedIn, and X.

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 $9.0 billion and trust assets of $45.5 billion as of December 31, 2025. Voters have chosen Union Bank and Trust Company as Best Bank, Best Work Environment, and Best Financial Planner in Lincoln for fourteen 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 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.

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.

² 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; 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); and Qualified Postsecondary Credentialing Expenses. 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 currently treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses: K–12 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.

Beginning January 1, 2029, withdrawals used to pay K–12 Expenses are set to be treated as Nebraska Qualified Expenses, subject to the federal annual limitation (currently $20,000 per Beneficiary per taxable year).

NOT FDIC INSURED* | NO BANK GUARANTEE | MAY LOSE VALUE

(*Except the Bank Savings Underlying Investment)