As the year winds down, it’s the perfect time to make a smart financial move that benefits both your family and your future student. If you're saving for college or career training for your loved one, a 529 plan is a powerful tool to get the most out of your money. 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 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.
These four simple tips can help you get organized and stay ahead, so your loved one can soar toward their dreams.
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1. CONTRIBUTE BEFORE DECEMBER 31 FOR TAX SAVINGS
If you want to maximize your Nebraska state tax benefits for the upcoming year, be sure to get your 2025 contributions in before December 31, 2025. Contributions made by account owners before the deadline may be eligible for Nebraska state income taxdeductions — up to $10,000 per year (or $5,000 if married filing separately).1
Even a last-minute, one-time contribution can make a big difference and give you one more thing to feel good about heading into the new year.
2. Roll Over Funds and Keep the Benefits
Already saving with a 529 plan in another state? You can roll overthose funds into a NEST 529 account and still qualify for Nebraska’s tax deduction — as long as the funds from the rollover are received before December 31.1,2
This makes year-end a great time to consolidate your education savings and take advantage of local tax incentives.
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.
3. Use the College Savings Calculator
Not sure if you’re saving enough or where to start? The NEST 529 College Savings Calculator helps you visualize how your savings could grow over time.
Simply enter your child’s age, your savings goals, and the type of school they may attend — whether a four-year university, community college, or trade program. The calculator gives you a personalized snapshot of your progress and helps you set realistic, achievable goals.
Try the NEST 529 College Savings Calculator.
4. AUTOMATE YOUR SAVINGS WITH RECURRING CONTRIBUTIONS
Let’s be honest: life gets busy. Between school lunches, sports practices, dentist appointments, and more, it’s easy to forget to move money into your loved one’s NEST 529 account.
Setting up automated recurring contributions is a simple, low-stress way to stay consistent without adding another task to your to-do list. You can choose monthly, quarterly, or annual deposits.3
You’ll be surprised how much progress you can make with just $50 a month.
Don’t Miss the Deadline
The December 31 cutoff is your last chance to lock in 2025 tax benefits. Whether you’re making your first contribution, adding a final boost, or rolling over from another plan, NEST 529 makes it easy to take action before the year ends.
To learn more or 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 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.
2 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.
3 Regular investing does not ensure a profit and does not protect against loss in declining markets.
NOT FDIC INSURED*| NO BANK GUARANTEE | MAY LOSE VALUE
(*Except the Bank Savings Underlying Investment)
