The Holiday Gift That Helps Them Grow

November 24, 2025

Each holiday season brings the same question: what gifts will bring real joy and lasting value? For many families, the answer might not be found under the tree but in a future filled with opportunity.

Opening and contributing to a child’s NEST 529 Education Savings Plan account is more than just a thoughtful gesture — it’s a meaningful investment in their future. While toys often break or are forgotten by February, a 529 account contribution gift can grow alongside your child and help open doors to education, training, and life’s next chapter.

The Perfect Holiday Gift

For parents and grandparents alike, the holidays are a time to express love, support, and hopes for the future. With a NEST 529 account contribution, you’re offering something no toy can match — the chance to reduce future student debt and help a child follow their dreams at a college, university, or trade school of their choosing.

Give Before Year-End for Extra Benefits

If you’re already a NEST 529 account owner — or thinking about becoming one — consider making your holiday contribution before December 31. Account owners who are Nebraska taxpayers may be eligible for state income tax deductions on contributions up to $10,000.1 Plus, any growth in the account is tax-deferred, and withdrawals for qualified expenses are tax-free.2

Already saving with a 529 plan from another state? Consider rolling those funds into a NEST 529 Education Savings Plan, helping simplify your savings and potentially qualify for Nebraska’s tax benefits.13 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.

Start Gifting

  1. Contribute to your account – Contributions can be made at any time and there are no minimums. You can easily make a one-time or recurring contribution. Our new streamlined online portal makes contributing even easier.
  2. Encourage others to give – Friends and family can also contribute to your loved one’s education savings through NEST GiftED.

Gifting to a NEST 529 account tells a child, “I believe in you.” It’s a lasting symbol of support — one that won’t end up lost in a toy bin. The sooner you start, the more of an impact you could have on their future, helping set them on a path to success.

Visit NEST529.com to learn more and start gifting for your loved one’s future.

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. back

2 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. back

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. back

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