As the holiday season approaches, many of us are searching for meaningful gifts that will truly last. Toys break, sweaters fade, and gadgets go out of style - but investing in a child's future? That's a gift that keeps on giving for years to come.
If you haven't considered it before, now's the time. A 529 plan is a state-sponsored investment account designed to help families save for future education expenses - and here in Nebraska, that plan is a NEST 529. With tax advantages, flexible contribution options, and a wide range of qualified uses, a NEST 529 account makes it easier to invest in your child's future.
This year, consider giving the gift of education with a contribution to a NEST 529 Education Savings account. It's thoughtful, impactful, and offers something most presents can't: the power to open doors for a child's future - and the change to help them build a life from student debt.
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WHY 529 CONTRIBUTIONS MAKE THE PERFECT GIFT |
Unlike traditional gifts, a NEST 529 contribution doesn't get shoved in the back of a closet or forgotten by February. It grows alongside your loved one, supporting their dreams, whether they attend a four-year university, community college, or trade school. Whether you're a parent, a grandparent, or family friend, a NEST 529 contribution:
- Makes a lasting impact on a child's future
- Helps reduce their need for student loans
- Sends the message that you believe in their potential
Download a printable NEST 529 gift certificate to make your contribution even more special.
CONTRIBUTE OR ROLLOVER NOW FOR 2025 TAX BENEFITS |
Here's another reason to give before the new year: tax benefits. By contributing, gifting or even rolling over funds from another529 plan into a NEST 529 account before December 3`, you can take full advantage of the valuable tax benefits available this year.
When you contribute to a NEST 529 account, your investment can grow tax-deferred, and withdrawals for qualified higher education expenses are federal and state tax-free. That includes tuition, books, supplies and more.1
Account owners who are Nebraska taxpayers can also deduct up to $10,000 per year (or $5000 if married filing separately)2 in contributions to a NEST 529 account, make it one of the many benefits of planning ahead for your loved one's future.
Already have a 529 plan in another state? You can roll those funds into a NEST 529 account - and still qualify for Nebraska's state tax deduction if you make the rollover before December 31.2,3 When considering a rollover, make sure to review the various advantages and disadvantages with your tax and financial advisor, including any potential recapture of tax deductions received from the original state, as well as whether any penalties or charges may apply.
| GIVE MORE THAN A GIFT - GIVE A LEGACY |
As you wrap your presents this holiday season, remember that the most meaningful gifts don't come in boxes. They come in the form of opportunity, growth, and belief in what's ahead.
A NEST 529 account contribution is more than just a financial deposit; it's a message of hope, confidence, and support that child will carry with them for years to come.
To learn more about friends and family gifting 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.
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.
3 Rollovers from another qualified tuition program are treated as a non-taxable distribution from the distributing qualified tuition program provided (1) it has been more than 12 months since any previous rollover for the beneficiary, or (2) the beneficiary of the account is changed to a Member of the Family of the current beneficiary.
NOT FDIC INSURED*| NO BANK GUARANTEE | MAY LOSE VALUE
(*Except the Bank Savings Underlying Investment)
