529 PLANS

TD Ameritrade 529 College Savings Plan

Nebraska

Nebraska's TD Ameritrade 529 College Savings Plan is very similar to The Nebraska Education Savings Trust, but is offered through discount broker TD Ameritrade at a slightly higher cost than the direct-sold Nebraska plan.

5-Cap Rating

Resident:
Non-Resident:

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
3.13 2.40 4.57 3.80 0.40

General

Program type:

Savings

How to enroll:

Enroll through TD Ameritrade.

Initial year of operation:

2010

State agency(ies):

Nebraska State Treasurer

Program manager:

First National Bank of Omaha

Program distributor:

TD Ameritrade, Inc.

Manager contract term:

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Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. resident individuals with a valid Social Security number or taxpayer ID number, UGMA/UTMA custodians, legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Nebraska's 529 plans for the same beneficiary reach $360,000.

Minimum contributions:

No minimum.

Investment Options

Age-based investment options:

The Age-Based Portfolios option offers a choice among 4 different risk levels (Aggressive, Growth, Index, and Conservative) each containing 5 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 3 static investment portfolios with varying risk tolerances and 17 individual-fund portfolios.

Underlying investments:

Vanguard, iShares, State Street, DFA, MetWest, Tributary, T. Rowe Price, and Goldman Sachs

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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See Investment Options

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.27% manager fee, plus a distribution fee of 0.19% and a 0.03% fee to the state.

Expenses of the underlying investments:

Ranges from 0.06% to 0.17% (portfolio weighted average) in the age-based and static multi-fund portfolios, and from 0.0175% to 0.99% in the individual-fund portfolios.

Total asset-based expense ratio:

0.51% - 1.48%

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions by an account owner who files a Nebraska state income tax return, including the principal and earnings portions of rollovers from another qualified college savings plan not issued by the State of Nebraska, 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. Contribution deadline is December 31 postmark.

State tax recapture provisions:

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Nebraska taxable income to the extent of prior Nebraska tax deductions.

State tax treatment of qualified distributions:

Qualified distributions from Nebraska and non-Nebraska 529 plans are exempt.

State tax treatment of rollovers:

Nebraska follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Web site:

Click here to visit

Telephone:

1-877-408-4644

Plan News

State News

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