LINCOLN – Nebraska State Treasurer, John Murante, encouraged Nebraska residents to open a college savings account for a loved one this holiday season. A Nebraska Educational Savings Trust (NEST 529) has certain benefits compared to other accounts.
NEST 529 comes with state income tax benefits. Account owners in Nebraska can save up to $10,000 in tax deduction or $5,000 per spouse if filing separately.
In order to take advantage of the tax deduction this year, contributions must be submitted online or postmarked before December 31 at 11:59 p.m. CT. Nebraska state income tax returns will indicate these contributions.
For people new to Nebraska with a 529 plan from another state, consider rolling that money into a NEST 529 account. These accounts are eligible for the same tax deduction, so make sure to maximize savings.
NEST 529 accounts are designed to make saving for college simple. All investments including the portfolio structure offered through this 529 program, are vetted and approved by the Nebraska Investment Council.
Investments into these 529 accounts are not FDIC insured, except for the Bank Savings Investment option. These accounts carry no Bank, State, or Federal guarantee and they may lose value.
For more information, visit https://treasurer.nebraska.gov/.