Got Kids? If so, get to know NEST 529 – it’s an important number
Some numbers are worth knowing. Like 911, 411 or 401(k). And if you have children who will someday attend a university, tech school, community college or graduate school, here’s another number worth knowing: 529.
In Nebraska, 529 is known as NEST 529 College Savings Plan. Simply put, it’s a NEST egg you set aside for your children’s higher education.
The NEST 529 Plan – like IRAs or 401(k) plans that are used to save for your future retirement – help you save for a child’s future higher education expenses at schools nationwide. It’s all about tax advantages, which is where the number 529 comes from – it corresponds to Section 529 of the IRS code.
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About those tax benefits
- NEST 529 earnings are not taxed while invested or used for qualified higher education expenses, and there are no capital gains taxes.
- Account owners who pay Nebraska income tax and contribute to a NEST 529 account are eligible for up to $10,000 in state income tax deductions.
Don’t stress, it’s not complicated
- Opening a NEST 529 account is easy and takes less than five minutes on your phone, your tablet or your computer.
- You can add to your account and review balances on the go, too.
- NEST 529 allows you to “set it and forget it” with automatic payments that link to your bank account or payroll deduction programs.
- Friends and family can contribute electronically into your account through online gifting or credit card rewards purchases.
Start with any amount, just start
It doesn’t matter how much money you earn; how old you are; or how much you save on an annual basis. The NEST 529 Plan is open to all. You can save a little or a lot – start with $10 or with $1,000. The point is to start saving early, because the more you save now, the less your children will have to pay for college later.
And, by the way, you can invest in NEST for anyone – for your child, grandchild, niece, nephew, friend, spouse or even yourself, as long as the person receiving the funds is expected to use them for higher education.
You can even change beneficiaries at any time, and unused funds can be reallocated to other members of the family, as long as the new beneficiary is a member of the family of the former beneficiary.
Plus, consider that NEST 529 has:
- No account opening fees
- No annual account fees
- No minimum deposit requirements
You’re in control
The NEST 529 College Savings Plan is designed to help you set aside funds for future college costs. Key word: YOU. It’s yours, and you are in control of how it is used.
So, you think your child will go to your alma mater at birth, but at age 12 she wants to play soccer at a different college? Not a problem. Funds in your NEST 529 account can be used to meet costs of almost all colleges and schools nationwide regardless of your state of residency or which state’s 529 plan you own.
Bottom line: NEST 529 is flexible
It’s worth repeating: a NEST 529 account is controlled by YOU. You can be as hands-on or as hands-off as you’d like when it comes to managing your account.
“NEST gives you options to fit your risk tolerance, your time frame and your savings goals,” said Deborah Goodkin, Managing Director of Savings Plans at First National Bank of Omaha. “And if your strategy ever changes, you have the flexibility to change your investment option twice per calendar year.
“With more than 100 years of investing experience, our investment experts have hand-picked a diverse lineup of underlying funds from well-respected companies, like Vanguard, State Street, T. Rowe Price and others.”
So, are you ready to start building a NEST egg for your children?
For more information and to open a NEST 529 account, go to NEST529.com