529 Plans: Nebraska

We’re finally making some progress east in our continuing series on this nation’s 529 college savings plans. Today, we move into the plains states and tackle the four plans Nebraska has to offer.

Corn Huskers can look forward to a few great options within their state's 529 college savings plans, and the plan is not limited to just Nebraskanites. Let's look at the details.

There are four plans to choose from in Nebraska:

• Nebraska Education Savings Trust (or NEST): Advisor College Savings Plan
• Nebraksa Education Savings Trust: Direct College Savings Plan
• State Farm College Savings Plan
• TD Ameritrade 529 College Savings Plan

Managed by the First National Bank of Omaha, all four plans offer up very similar means to help citizens save for college. Anyone in the country can participate in any of the plans as there are no state residency requirements. Also, people opting to save within one of Nebraska’s plans can expect no account maintenance or enrollment fees. In addition, contributions made by the account owner can be deducted when computing income for taxes to the tune of $5,000 (individuals or married filing jointly) or $2,500 (married filing separately). There are no contribution matching programs for Nebraska plans.

While there is a $360,000 maximum contribution per same beneficiary in Nebraska’s 529 plans, three of the plans do not have any minimum contribution levels. The exception to this is the State Farm plan, which has an initial $250 contribution for those opting to contribute in a lump-sum (with a $50 minimum after that); those opting to invest via an automatic investment plan can expect a minimum $50 payment per portfolio.

As far as investment choices, each plan offers up options that are age-based with different risk levels and options that are static with individual- and multi-fund portfolios.

Of the four plans, both the NEST: Advisor College Savings Plan and the State Farm College Savings Plan are advisor sold. Direct sold options include the other two plans, NEST: Direct College Savings Plan and TD Ameritrade 529 College Savings Plan. Those interested in the State Farm plan and the TD Ameritrade plan should seek out representatives of those companies, respectively.

Finally, each plan except the State Farm plan can be linked the Upromise Rewards service.

We’ll tackle some more midwestern states’ college offerings in the coming weeks, so stay tuned!

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