When most parents hear the words “529 plan,” they think of one thing: college tuition. And yes, that’s a big part of it, but there’s so much more a NEST 529 Education Savings Plan can cover.
With NEST 529, funds can go far beyond tuition. Whether your child dreams of becoming a welder, a nurse, an artist, or earns a full-ride scholarship and still has room and board to pay for, NEST 529 gives you the flexibility to support their goals in whatever path they take. Here’s how:
More Than Tuition: What NEST 529 Funds Really Cover
A NEST 529 Education Savings Plan is built with real life in mind. In addition to traditional college costs, funds can be used for the following qualified expenses:¹
Great question and another reason a NEST 529 Education Savings Plan is a smart, flexible option.
Let’s say your child chooses a different path (or even gets a full scholarship). You still have several options:
- Change the Beneficiary
Use the funds for another member of the beneficiary’s family such as a sibling, child, or even yourself. - Support Vocational or Technical Training
Use the money for hands-on career programs or apprenticeships. - Go Back to School Yourself
Looking to change careers or finish a degree? You can use the funds for your own education too. - Repay Student Loans
Apply up to $10,000 toward qualifying education debts.
Want to Learn More? Ask Penny.
- Two-Year, Four-Year, and Trade Schools
Whether your child chooses a community college, four-year university, or trade school, NEST 529 funds apply. That includes vocational programs like welding, plumbing, cosmetology, culinary arts, and more. - Apprenticeship Programs
Your child doesn’t need to follow a traditional academic path to benefit. NEST 529 funds cover registered apprenticeships including tuition, books, and required supplies. - Room & Board
Enrolled at least half-time? NEST can help cover housing costs, whether that be in a dorm or an off-campus apartment. - Books, Supplies, and Tech
That new laptop? Chemistry lab kit? Required software? They’re all qualified expenses under NEST 529 funds. - Graduate or Continuing Education
These accounts aren't just for incoming freshmen. NEST 529 funds can be used for graduate school or if they decide to go back to school later in life. - Student Loan Repayment
You can use up to $10,000 of NEST 529 funds to repay qualified student loans for your child.
What If My Child Doesn’t Go to College?
Still trying to figure out whether a NEST 529 Education Savings Plan is better than a traditional savings account? Check out this short video from Penny, NEST 529’s very own college savings advocate, to hear how 529 plans compare to other savings tools.
And here’s one more reason to consider NEST 529 Education Savings Plan over a standard savings account: Account owners who are Nebraska residents may be eligible for Nebraska State income tax deductions — up to $10,000 per year (or $5,000 if married filing separately)2.
Life rarely follows a straight path, and your education savings shouldn’t have to either. With NEST 529, you gain the financial flexibility to support a broad range of educational goals. Whether your
child dreams of attending art school, becoming an electrician, or pursuing a master’s degree, a NEST 529 plan is designed to help make those dreams affordable and achievable.
To learn more about eligible expenses or to open an account, visit NEST529.com.
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.
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 Expenses and Qualified Post-Secondary Credentialing 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.
2Account 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.
NOT FDIC INSURED*| NO BANK GUARANTEE | MAY LOSE VALUE
(*Except the Bank Savings Underlying Investment)
