FAQs

An account may be opened by an individual, certain entities (including a partnership, corporation, estate or association that is domiciled in the United States), a custodian under a state’s UGMA or UTMA statute or a trust to save for the Federal Qualified Higher Education Expenses of a Beneficiary. An account may also be established by a state or local government or a tax-exempt organization described in Code Section 501(c)(3) as part of a scholarship program operated by the government or organization. Each account owner must have a Social Security number or taxpayer identification number and a residential U.S. street address.

To open an account, you must complete an Enrollment Form. You can obtain an Enrollment Form by:

• Enrolling online
• Downloading the form, completing and submitting it to the Plan

By completing and submitting an Enrollment Form, you agree to be bound by the terms and conditions of the Program Disclosure Statement and Participation Agreement, which govern your rights, benefits and obligations as an account owner.

The Beneficiary is the individual for whom Federal Qualified Higher Education Expenses are expected to be paid from the account. Any individual with a valid Social Security number or taxpayer identification number can be a Beneficiary. A Beneficiary can be of any age and need not be a resident of the State of Nebraska or of the United States. Each account may have only one Beneficiary, but different account owners may establish different accounts for the same Beneficiary. An account owner may also name himself or herself as the Beneficiary.

An account owner may change the Beneficiary at any time without adverse federal income tax consequences if the new Beneficiary is a Member of the Family of the former Beneficiary. Upon a change in Beneficiary, the account owner may also change the Investment Options in which the account is invested. However, upon a change of Beneficiary, the existing assets plus the assets moved to the new Beneficiary’s account cannot result in the total account values in all accounts in the Trust for the new Beneficiary to exceed the Maximum Contribution Limit, currently $500,000.

Contributions can be made to an account by:

• Contributing electronically from your bank account
• Checks
• Wire transfer
• Payroll direct deposit
• Rollover from an out-of-state 529 qualified tuition program
• Coverdell Education Savings Account
• Redemption from certain U.S. Savings Bonds
• Transfers within the Plan
• UGMA or UTMA accounts
• NEST GiftED

Contributions by an account owner who files a Nebraska state income tax return, including the principal and earnings portions of rollovers from an out-of-state 529 qualified tuition program, are deductible in computing the account owner’s Nebraska taxable income for Nebraska income tax purposes in an amount not to exceed $10,000 ($5,000 for married taxpayers filing separate returns) in the aggregate for all contributions to all accounts within the Trust in any taxable year. Contributions by a custodian of an UGMA or UTMA account who is also the parent or guardian of the Beneficiary of an UGMA or UTMA account may claim this deduction.

Withdrawals for K–12 Tuition Expenses and Qualified Education Loan Payments are Nebraska Non-Qualified Withdrawals. Nebraska state tax deductions are subject to recapture if the account owner cancels a Participation Agreement, makes a partial or complete Nebraska Non-Qualified Withdrawal or rolls assets to an out-of-state 529 qualified tuition program or ABLE program.

The Plan has no annual account fee. The all-in Investment Option costs are: The all-in costs include the 0.08% program management fee, 0.02% state administrative fee, and the expenses of the Underlying Investments. Review the Program Disclosure Statement or the Portfolio Performance page for a detailed listing of all Investment Options and expenses.

You can download copies of the latest audits here:

Fiscal year Ended December 31, 2023

Fiscal year Ended December 31, 2022

Distribution requests may be made online, by completing a Withdrawal Request Form, or by telephone. If the withdrawal request is in good order, the Plan typically will process the withdrawal and initiate payment within two business days of receipt. During periods of market volatility and at year-end, however, withdrawal requests may take up to five business days to process. When requesting a withdrawal please allow seven to ten days for the proceeds to reach you.

This generally includes any accredited post-secondary educational institution in the United States offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree or another recognized post-secondary credential. Certain proprietary institutions, post-secondary vocational institutions and foreign schools also are Eligible Educational Institutions. These institutions must be eligible to participate in U.S. Department of Education student aid programs provided by Title IV of the Higher Education Act of 1965. Listing of Eligible Schools

Federal Qualified Higher Education Expenses include:

1. Tuition, fees, books, supplies and equipment required for the enrollment or attendance of a Beneficiary at an Eligible Educational Institution;
2. Subject to certain limits, the Beneficiary’s room and board expenses if enrolled at least half-time;
3. The purchase of computer or peripheral equipment, computer software or Internet access and related services if they are to be used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Eligible Educational Institution;
4. Expenses for special needs services in the case of a special needs Beneficiary which are incurred in connection with enrollment or attendance at an Eligible Educational Institution;
5. K–12 Tuition Expenses;
6. Apprenticeship Program Expenses; and
7. Qualified Education Loan Payments.

NEBRASKA Taxpayers:  please see the next question: “What is a Nebraska Non-Qualified Withdrawal?”

Nebraska law does not treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses:

• K–12 Tuition 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.

There are several general guidelines when investing in a 529 plan, but individual situations and individual financial aid programs may vary (particularly among non-federal programs). We recommend you review with your own advisors as well as the college admissions office, your high school guidance counselor, and individual aid programs for guidance regarding your individual situation.

Parental and student income are generally the primary determining factors for financial aid, however, assets may also factor in. If a parent of the student seeking financial aid is the account owner of a NEST 529 account, it may be treated as a parental asset – if so, up to 5.64% of the value of the account may be included in the expected family contribution calculation for federal financial aid purposes. A custodial 529 account (i.e.: UTMA 529 or UGMA 529 account) is typically also treated as a parental asset (up to 5.64% of the value included) for purposes of the federal aid application.

Withdrawals from a 529 may also receive favorable treatment. Generally, withdrawals from a parent-owned 529 account are not includible in the income portion of the financial aid calculation, if the withdrawals were used for qualifying educational expenses. Beginning in December 2023 for the 2024-25 academic year, FAFSA will no longer report distributions from a grandparent’s 529 plan as untaxed student income, which previously had the potential to drastically reduce a student’s aid eligibility and cash support.

Financial aid rules may change at any time. Visit studentaid.gov for details and specifics regarding 529’s and their financial aid treatment.

The Plan utilizes Vanguard, DFA, T. Rowe Price, State Street, and MetWest funds.

The Plan offers:

• 3 Age-Based Index Investment Options
• 3 Age-Based Multi-Firm Investment Options
• 5 Static Investment Options
• 15 Individual Fund Investment Options

Effective January 1, 2024, NEST 529 assets can be rolled over directly into a Roth IRA.

IMPORTANT: The following limitations and restrictions apply:

• The NEST 529 Account must have been maintained at least 15 years.
• Only contributions (and any earnings attributable thereto) made to the NEST 529 Account more than five years prior can be rolled over.
• The Roth IRA rollover must be made in a direct trustee-to-trustee transfer to a Roth IRA account maintained for the benefit of the NEST 529 Beneficiary.
• Rollover contributions cannot exceed the IRA contribution limit for that tax year ($7,000 in 2024). All contributions made during the year to individual retirement accounts for the Beneficiary count towards this limit.
• The aggregate amount for all years of Roth IRA Rollovers for the same Beneficiary from all 529 qualified tuition programs may not exceed $35,000.

Account Owners should consult their own tax and financial professionals before making a Roth IRA Rollover.